Motor insurance rates continue to rise in the UK as inflation soars

Oxbow Partners, a British consultancy, is forecasting a 14% increase in motor insurance rates in 2023 and a 6% rise in 2024.

The Association of British Insurers has reported that the average cost of a motor policy reached 478 GBP (576.4 USD) in the first quarter of 2023, up by 16% over one year. This is the highest level recorded since the end of 2019.

The soaring prices of spare parts, labor and other expenses associated with vehicle repairs are taking a heavy toll on UK insurers' accounts.

This price hike is causing concern among industry professionals, who are expecting some policyholders to cancel or modify their insurance coverage.