In 2024, UK drivers are facing a significant jump in car insurance costs, with the average policy now topping £1,361 per year. For many, this is more than a 40% increase compared to 2022. With these changes, it’s important to ask yourself: Is your car insurance bill fair?
Here at ismybillfair, we’re all about helping you understand if you’re paying too much. Let’s break down what’s causing these premium hikes and what you can do to fight back.
What’s Driving the Increase?
The main reasons for skyrocketing car insurance premiums in 2024 include:
- Rising Repair Costs: The cost of vehicle repairs has gone up by 32% due to global supply chain disruptions and a shortage of spare parts. As cars get more high-tech, repairs become more expensive, especially for electric vehicles (EVs), which are 25% more costly to fix than petrol cars.
- Inflation: Inflation is hitting everyone’s pocket, and insurers are no exception. With higher costs across the board—from car parts to medical expenses for injury claims—insurers are passing these increased expenses onto drivers.
- More Expensive Claims: Insurers are paying out more per claim due to the rising cost of new vehicles and medical treatments. This means that, overall, it’s costing insurers more to cover accidents, which is reflected in higher premiums.
- Higher Risk for Younger Drivers: If you’re under 25, your insurance bill has likely seen a dramatic spike, with average premiums now well over £2,000. Young drivers remain a high-risk group, and insurers have responded by raising premiums more steeply for this demographic.
Are You Paying More Than You Should?
With premiums rising so fast, it’s more important than ever to make sure you’re not paying over the odds. ismybillfair can help you compare what you’re paying with other drivers to see if your bill is fair. We look at your age, location, and driving history to show you how your premium stacks up against others.
How Can You Lower Your Car Insurance Costs?
Here are a few tips to reduce your car insurance premium in 2024:
- Consider a Telematics Policy: Also known as a “black box” policy, this option can reward safe drivers with lower premiums. It’s especially useful for younger drivers looking to combat high insurance costs.
- Pay Annually, Not Monthly: Paying your insurance in one lump sum can save you from additional interest charges often applied to monthly payments.
- Shop Around in Advance: Don’t wait until the last minute to renew your insurance. Start comparing quotes weeks before your policy expires to ensure you get the best deal possible.
- Increase Your Excess: Opting for a higher voluntary excess can lower your premium. Just make sure you can afford to pay the excess if you ever need to make a claim.
Final Thoughts
Car insurance premiums are on the rise, but that doesn’t mean you should settle for paying more than your fair share. ismybillfair is here to help you compare your car insurance bill and see if you’re getting a good deal. With the right tools and a bit of research, you can navigate the insurance market and keep your premiums under control.
