Martin Lewis has warned motorists could be paying a “shed load” more on their car insurance policies in March than just six months ago.
The Money Saving Expert founder said “rises are happening” across the board with motorists set to see their bills rise on top of last year’s increases.
Road users are likely to notice the difference more in March as Martin highlights this is usually one of the biggest months for drivers renewing their agreement.
The finance guru admitted he had been inundated with drivers desperate to find out about the current state of car insurance premiums as worried motorists look to save the pennies.
However, Martin could only paint a bleak picture as he updated road users in a recent MoneySavingExpert newsletter.
Mr Lewis said: “In October, I wrote in this email that, hideously, average car insurance prices had risen to a massive, unthinkable £924/yr. Now, as we approach March, one of the busiest months for renewals, October is looking like the good old days.
“So let me settle this: based on the wrath of scores of people via my email-bag, I can confirm… they’re up a shed load, and that’s on top of the previous year’s hikes.
“Insurers say rises are due to general inflation, increasing car repair costs – with garages charging more for parts and labour – and having to pay out more for written-off cars, as used-car values have risen. Whether this justifies it or not is moot; the rises are happening.”
According to Martin, two comparison sites say that by the end of 2023 quoted premiums were up over 50 percent.
Meanwhile, two claims that average prices for cover now stands at or over the £1,000 per year mark.
The Association of British Insurers (ABI) say rises on average premiums are 34 percent higher than at the end of 2022.
In the previous quarter alone, the ABI saw a 12 percent rise with average costs jumping from £562 to £627.
However, Martin highlighted that it wasn’t all bad news for road users as he gave a prediction for the rest of the year.
He added: “In 2024, prices shouldn’t rise as steeply – they may even flatline.
“Even so, when you hit renewal you’ll still be slapped with last year’s huge hikes.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.