Our Predictions for Car Insurance Trends in 2024

Our Predictions for Car Insurance Trends in 2024

Here is some general information on the trends that we predict will be seen in the UK car insurance market in 2023:

1. Increasing Premiums: During 2022 and 2021, car insurance premiums in the UK continued to rise due to increasing personal injury claims and the impact of Covid-19 on the insurance industry.
2. Telematics: Telematics technology (which measures driving behaviour and provides personalized pricing) continued to grow in popularity among UK drivers, as it often leads to lower insurance premiums for safe drivers.
3. Whiplash Claims: In 2021, the UK government introduced reforms to reduce the number of whiplash injury claims and the cost of driver insurance.
4. Electric Vehicles: The number of electric vehicles (EVs) on UK roads continued to grow in 2021 and 2022, leading to changes in the car insurance market as insurers adapted to EVs’ unique risks and requirements. Electric vehicle insurance will likely increase year-on-year.

This information should be taken as general information and not as definitive data. Data on the insurance markets can change quickly, and the specific circumstances in each case can impact the insurance cost.

What factors are contributing to rising insurance premiums in the UK?

There are several factors contributing to the rise in car insurance premiums in the UK:

1. Personal Injury Claims: The increasing number of claims, particularly for whiplash injuries, has increased insurance costs for UK drivers.
2. Covid-19 Impact: The Covid-19 pandemic has significantly impacted the insurance industry, leading to increased costs for insurers and higher premiums for policyholders.
3. Fraud: Insurance fraud is a significant problem in the UK. Fraudsters make false claims to obtain compensation, driving up the insurance cost for all drivers.
4. Cost of Repairs: The cost of repairing vehicles, particularly high-tech vehicles with complex systems, has increased in recent years, leading to higher insurance premiums.
5. Regulation: Changes to rules, such as the government’s recent reforms to reduce the number of whiplash claims, can impact the cost of insurance and result in higher premiums for drivers.
6. Increased Competition: The competitive nature of the UK insurance market can also lead to price increases as insurers try to maintain their profit margins while balancing the cost of claims.

What are the best insurance tips to consider in 2024?

Here are four potential money-saving techniques that customers could use.

1. Review: Carefully review your policy details before agreeing to a policy. Ensure that the policy provides the coverage you need.
2. Compare: If your insurance renewal is the same or less, you can still potentially save by comparing. If your provider has increased your premium, there’s more reason to compare.
3. Multi-policy: Some providers offer to cover multiple insurance types. Sometimes, this can result in significant savings.
4. No Claims: Remember to declare any no-claims discounts.
5. Ask: Simply asking whether you can have a discounted rate may get you a better deal.

The five items above do not constitute advice. Should you require advice, please consult a FCA approved financial advisor.