Analysis reveals car insurance premium breakdown by age and regions
The average quoted price of car insurance rose by 67.2% in the year to November – the highest annual increase on record, the latest Consumer Intelligence Car Insurance Price Index ¹ shows.
This beats the 61% rise in the year to August 2023 and the 34% increase in the year to May 2023 which were the two previous record increases.
However, there are signs of a slowdown – while quoted premiums rose 10.6% in the three months to November, that was significantly lower than the 22% rise in the three months to August and the 15.2% increase in the three months to May.
Data shows that in November, drivers most commonly received a quote between £500 and £749 with 21% of quotes falling in this price range.
Record payouts for claims of £2.54bn in the third quarter of 2023 as reported by the Association of British Insurers as well as damaged caused by Storm Babet, particularly in Scotland and the East Midlands, has added to the quoted premium increases.
However, telematics providers have become more competitive accounting for 18% of the top five quotes compared with 17% in the year to August but down from 24% in the three months to February.
“Record payouts for claims are having an impact on quoted premiums and there is evidence that in certain areas such as Scotland and the East Midlands recent storms have had an impact on premiums,” says Max Thompson, Insurance Insight Manager at Consumer Intelligence.
“During the last quarter small increases in telematics competitiveness were observed across all the age groups of one to two per cent. However, motorists across all age groups and all over the country are seeing major increases in quoted premiums,” adds Thompson.
Long-term view
Average overall quoted premiums have more than doubled by 124.4% since October 2013 when Consumer Intelligence first started collecting data.
Quoted premiums are at their highest levels since Consumer Intelligence records began with 64.2% of the increase happening in the year to end-November.
Age differences in the past year
Younger drivers have experienced the biggest rises in quoted premiums of 73.1% compared with 57.2% for the over-50s and 63.9% for motorists aged between 25 and 49.
Telematics
Telematics policies provided 43% of the rank one to five quotes for under-25s compared with 14% for those aged between 25 and 49 and 7% for the over-50s in the three months to November.
The proportion of rank one to five quotes for under-25s has however been as high as 56% this year.
Regional differences
Average quoted premiums have risen the most for drivers in London and the South East with Increases of 76.9% and 71.3% respectively.
However, all regions are experiencing major increases in quoted premiums with the South West the only region recording a rise of less than 60% and its increase was still 57.2%.
| Region | Price Index past 12 months (November 22 to November 23) |
| London | +76.9% |
| North West | +63.1% |
| West Midlands | +69.4% |
| North East | +65.4% |
| South East | +71.3% |
| Eastern | +68.1% |
| Yorkshire & The Humber | +65.0% |
| Scotland | +69.4% |
| South West | +57.2% |
| East Midlands | +65.3% |
| Wales | +62.1% |