Motor insurance premiums in the UK increased significantly at the end of last year, with the average cost rising by a third. According to the Association of British Insurers, the average premium paid by drivers for coverage between October and December 2023 was £620, compared to £470 during the same period in 2022. The insurance industry attributed these price hikes to increased costs, including longer repair times, higher expenses for replacement vehicles, rising repair costs due to factors like increased wages and energy costs, and the growing complexity of vehicles, especially electric ones, which require more specialised expertise for repairs.
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April 16, 2026
