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Motorists report huge hike in renewal premiums

By Craig Perry
22nd November 2023

  • Three in 10 motorists received renewal premiums that were “substantially higher” than the previous year’s according to new study.
  • Over a half of all motorists now shop around for better deals on their car insurance.

A new study1 from The Green Insurer, the UK’s first green car insurance broker, reveals a sharp increase in motor insurance renewal premiums, with motorists stating they are receiving quotes that are on average 26% higher than what they were paying last year. Men say they are being quoted 28% higher premiums on average, compared to women who say they are seeing on average a 24% increase in their renewal premium.

The increase in motor insurance renewal premiums is widespread and causing financial strain for many vehicle owners, with 70% of all respondents reporting that the premium offered by their insurer was higher than the previous year. Almost three in 10 (29%) motorists described their renewal quote as being “substantially higher” and 41% said it was “slightly higher”. Almost one in five (19%) of drivers said their renewal quote was roughly similar to last year’s, and just 7% said it was “slightly lower”.

The findings show that this hike in motor insurance renewal premiums has spurred many policyholders to take various measures to try and reduce their car insurance, with over a half (52%) of all motorists saying they shop around for more competitive quotes and just over a quarter (26%) saying they switched to a cheaper insurer.

Another tactic used by 20% of motorists when looking to reduce their renewal premiums was to call their existing insurer to try and negotiate a cheaper price. Other actions taken include cutting their annual mileage (18%), increasing the excess on their premium (13%) and switching to an insurer who uses telematics, advanced technology within the car that assesses an individual's driving performance (3%).

The study reveals that motorists who shop around to try and get the best car insurance deal will on average get quotes from four different insurers or price comparison websites. A quarter (24%) of people say they typically only use two different insurers or comparison websites to source their quotes.

Paul Baxter, CEO said: The surge in motor insurance renewal premiums is becoming a growing concern for many vehicle owners who may already be facing economic uncertainties. Our findings show that there is a notable trend for policyholders to shop around for more competitive rates, which in turn is intensifying competition within the insurance industry.

However, aside from shopping around, we’re also seeing some motorists taking environmentally friendly measures, such as reducing their annual mileage or opting for insurers who use telematics that reward them with lower premiums and incentivise better driving habits.

We have designed our newly launched car insurance policies to reward people for making positive adjustments in the way they drive and have negotiated special deals with insurers. We also offer customers rewards for environmentally friendly driving and discounts on weekly supermarket shopping through a range of partnerships.

  • [1] Independent consumer research conducted by Viewsbank among a nationally representative sample of 1,135 adults aged 18-plus including 888 car owners between November 17th and 20th 2023.