Drivers risk having to 'give up' their cars over unwelcome £612 charge
Despite a slight decrease in premiums towards the end of 2024, costs remain substantially higher than in previous years.
A new survey sheds light on the harsh realities faced by UK drivers - and as many as 33 per cent are contemplating giving up driving altogether. Despite a slight decrease in premiums towards the end of 2024, costs remain substantially higher than in previous years.
The Association of British Insurers (ABI) reported that the average motor insurance premium fell by 2% in the third quarter of 2024 to £612. But the figure was still £50 (9%) higher than the same period in 2023, indicating ongoing financial strain for motorists.
The survey also highlighted that over two-thirds (69%) of drivers have altered their driving habits to manage these rising costs. The average claim paid rose by 13% from the previous year to £4,900, with vehicle repair costs totalling £7.7 billion—a record high and £1.5 billion more than in 2023.
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Ian Wilson, Managing Director at Tiger.co.uk, describes motorists as “being hammered” by rising costs across the board, adding that it is “leaving many people with no choice but to give up on driving completely, as they are being priced out of the market”.
“While the average cost of car insurance in the UK has started to decrease slightly—a trend which will hopefully continue throughout 2025—the reality is that premiums currently remain significantly higher than they were just a few short years ago.
"When coupled with the soaring costs of running a car such as road tax, repairs, and servicing, many drivers are being stretched to the limit financially.“
The survey found that 80% of respondents now use price comparison sites to shop around for better deals. 77% avoid automatic policy renewals, and 70% switch providers annually in search of more competitive rates.
According to a report by Confused.com, the average UK premium in the fourth quarter of 2024 was 33% higher compared to two years prior. But more than a third (36%) of UK drivers believe their car insurance is more expensive now than it has ever been, with almost one in five (19%) having to dip into savings to cover their policy costs.