As with everything right now, the price of car insurance cover is rising. Comprehensive car insurance policies reached an 18-month high in the first quarter of this year and it looks very much as though this will continue due to general inflation in the economy and some new regulatory changes.

The average price for a comprehensive car insurance policy is currently £550, according to the latest index from price comparison site Confused.com.

Prior to all the usual factors causing inflation – pandemic, war and so on – car insurance premiums had retreated for a while all the way to the autumn of last year as lockdowns kept motorists off the roads and competition in the UK car insurance industry intensified.

But as people get back in their cars and life returns to something looking a little bit like normal, the cost of insurance premiums are rising.

Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW anticipates that premiums will continue to rise throughout this year. As Britain deals with high inflation and insurers deal with new rules to ensure consumers renewing policies are not charged more than new customers, the price of policies will increase further.

As reported last week, Britain’s annual inflation rate climbed to 7% in March, its highest for 30 years.

Louise O’Shea, CEO at Confused.com said:

“Prices could continue to increase simply because insurers are likely to be facing more claims than last year, as people start to drive more frequently, and this just means insurers will have to be as competitive as possible. And in turn consumers will need to continue to shop around, as the assumption that renewal prices won’t increase clearly isn’t true.”