Car insurance is the latest household bill to go through the roof, with angry motorists complaining that prices are shooting up by as much as 70% when their policy comes up for renewal.
While fuel prices have dropped back from 2022’s record highs the latest inflation bulletin from the Office for National Statistics (ONS) showed a new source of financial pain, with the price of car insurance up 43.1% in the last 12 months.
However, some drivers are reporting an even worse situation than the official data suggests, with customers of Direct Line and Saga shocked by the magnitude of price increases in their renewal documents for this year.
Angry Direct Line customers have taken to posting on the Trustpilot website to complain about increases ranging from about 50% to more than 75%. One reviewer said her renewal price was up 75% on 2022 for no apparent reason, adding: “How can any company justify that?”
One driver told the Guardian that when the renewal quote for her Saga over-50s car insurance arrived, the cost of the policy had jumped 77% to £2,044 even though “nothing has changed”. She quit the insurer after finding a cheaper deal elsewhere.
The big increases being reported by customers do not yet tally with the industry’s own figures. The average price paid for motor insurance in the first three months of 2023 was £478, which is 16% higher than in 2022, according to the Association of British Insurers (ABI) quarterly motor insurance premium tracker.