Car insurance premiums for most popular models ‘rise by £100’ | Economic news
The average cost of insuring the ten most popular car models has jumped by £100, according to analysis by a price comparison site.
Comparethemarket.com said drivers typically paid a premium of £675 for their annual insurance between March and May this year, compared to £575 in the same three months in 2021.
He blamed the rising value of used cars and spare parts, given the supply chain disruption the global auto industry has experienced, which has also drastically reduced production of new vehicles.
Rising premiums add to the cost of living pressure on family budgets, with fuel prices still hovering at record highs.
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Motoring groups have previously reported that soaring costs have forced drivers off the road as they also face unprecedented rises in household gas and electricity bills as well as higher food prices. students.
The inflation rate is at its the highest level in 40 years at 9.1% and is expected to climb higher, exceeding 11% in the fall according to the Bank of England’s forecast.
Comparethemarket.com warned that drivers of the most popular, often smaller, cars were faced with the cost of the automobile becoming “increasingly unaffordable”.
He said, based on his own numbers, the most popular car to insure between March and May was the Ford Fiesta Zetec.
“An annual premium for a Ford Fiesta Zetec now costs an average of £785 to insure, which is £129 more than in the same period in 2021,” the report said.
The Mini Cooper and Fiat 500 Lounge were the second and third most popular models to insure, respectively, he said.
“A Mini Cooper typically costs £617 a year to insure, up from £87 from 2021.
“The average premium for a Fiat 500 Lounge has also increased by £57 year-on-year. Insuring a Fiat 500 Lounge costs an average of £521, making it the cheapest car to insure among the ten most popular.”
Comparethemarket.com Director Alex Hasty said: “Insurers use many factors to calculate car insurance premiums, depending on the individual and how they drive, as well as the make and model of the vehicle. .
“Normally, the bigger your car’s engine, the higher the insurance premium. Alarms, immobilizers or other built-in safety devices can reduce the cost of insurance by making a car more difficult to fly.
“It’s a good idea to shop around and see if you can get a better deal each time your policy comes up for renewal.”