Home | Blog | Motorists report huge hike in renewal premiums

By Craig Perry, 22nd November 2023

Category: Car insurance

Motorists have certainly been on the receiving end of some undesirable price hikes this year. After suffering some of the biggest increases in petrol prices at the pumps, our recent survey reveals that many drivers are also seeing a significant spike in their motor insurance renewal premiums. Our findings indicate that three in 10 motorists received renewal quotes that were on average 26% higher than what they had paid the previous year.

Our study sheds light on the widespread impact of the increase in renewal premiums, with 70% of respondents reporting that their insurer offered a higher premium than the previous year, with men facing an average increase of 28% and women experiencing a 24% hike in their renewal premiums.

The repercussions of this surge have driven motorists to explore various strategies to mitigate the financial impact. Over half (52%) of respondents now actively shop around for better deals on their car insurance. Additionally, 26% have taken the proactive step of switching to a more affordable insurer.

One sensible tactic employed by 20% of motorists is to try and negotiate with existing insurers to secure a lower price. Other measures include cutting annual mileage (18%), increasing the excess on premiums (13%), and opting for insurers using telematics technology to monitor driving and offer customers lower premiums (3%).

The study underscores the importance of consumers actively seeking competitive premiums, as those who shop around receive quotes from an average of four different insurers or price comparison websites. However, a quarter of respondents (24%) reveal that they typically explore only two different insurers or comparison websites when sourcing quotes.

In addition to shopping around for a lower premiums, our survey also reveals a change in motoring behaviour with people taking environmentally friendly steps to offset rising costs. Such measures include reducing their annual mileage or opting for insurers who use telematics that reward them with lower premiums and incentivise better driving habits.

Our own car insurance policies are designed to incentivise positive driving adjustments and include special deals negotiated with insurers. We’re also trying to help reduce other areas of our policyholders’ household expenditure with discounts on weekly supermarket shopping through strategic partnerships. We believe that taking a holistic approach will help ease some of the financial burdens faced by motorists whilst encouraging more environmentally friendly driving habits.