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Go.Compare comments on the latest ABI car insurance figures

Tom Banks, motoring expert at Go.Compare Car Insurance comments on the latest ABI tracker, out today, which shows that:

  • The average comprehensive car insurance premium now sits at £635, up 1% on the previous quarter (Q4’23), indicating an easing of rises seen in 2023.
  • Insurance companies continue to absorb growing costs, with the average claim paid rising 8% to reach a record of £4,800 over the same period.

“These latest figures from the ABI will no doubt be welcomed by motorists, who have been feeling the impact of premiums increasing for some time now. “In fact, our own price index for car insurance showed that the cost of car insurance had risen by 35% between Q2 2022 and Q4 2023, and the average price of car insurance was £465*. We also found that over 80% of motorists said that they have seen their insurance premiums increase this year, which is a significant number of people who have been dealing with rising insurance costs.**

“The escalating cost of car insurance premiums in the past couple of years has been widely attributed to the rising costs of replacements and repairs, as well as inflation, so it’s good news to see this is now stabilising and we will see this reduction in premiums being passed onto the policyholder. However, it also shows that the industry is working hard to keep the costs down for consumers so only time will tell if this can continue or whether we will see premiums increase again.

“There’s very little we can do as motorists to change the insurance landscape externally, but there are some things that you can do to help keep your own insurance costs down. For example, being aware of the factors that impact the price of your car insurance can really help manage costs. There are a whole range of factors insurers take into consideration when calculating the price of your car insurance and there are some simple changes you can easily make to reduce your insurance premium– buying your insurance policy 27 days before it is due to renew is an effective one.”

Go.Compare has compiled 18 tips on how to get cheaper car insurance, some of these include:

  •  Watching your mileage: Statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your car insurance will probably be more expensive than someone who drives only 6,000 miles. While this isn’t always guaranteed, simply driving less could help you lower the cost of your car insurance and it remains important to estimate your mileage as accurately as possible.
  • All in a day’s work: It may be worth thinking about how you describe your job and the work that you do. If, for example, you don't commute, you may be able to find a cheaper policy by describing your insurance as being 'for social use’.

Also, the way you describe your job can affect your premium. For example, a 'chef' might pay a different premium to a 'cook’ as even though the roles are very similar in reality, the insurers may treat them differently. But be honest or you risk invalidating your policy.

For more information, and to read Go.Compare’s report on the “Cost of car insurance”, please visit: 

Contact Information

Rubie Barker

Notes to editors

For further information please contact:

*Cost of car insurance by quarter. Median premium paid by all customers of all ages, for annual payments all car insurance policies bought through Go.Compare. More information can be found here:

**These findings are from a study released by Sago between January 26-29, 2023, among a random selection of 2,219 of GB adults ages 18+ who are online panelists of Sago’s Community.

The results were weighted by age, gender, region, and ethnicity to match the population, according to Census data. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding. Excerpts from this release of findings should be properly attributed, with interpretation subject to clarification or correction.

Sago is the global research and data partner that connects human answers to business questions. Combining a legacy of impact, global reach, and innovative spirit, Sago enables clients to solve business problems through extensive audience access and an adaptive range of qualitative and quantitative solutions.”

About Go.Compare

Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.

Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA). More information can be found here or here