UK motor insurance costs jumped 8% in fourth quarter of 2022 – ABI

LONDON, Feb 3 (Reuters) – British households saw their motor insurance bills rise by 8% on average over the last three months of 2022, according to data published by the Association of British Insurers (ABI) on Friday.

The average premium paid for private motor insurance was 470 pounds ($576), the ABI said, adding that some member companies reported high energy costs had added nearly 72 pounds to each vehicle repair bill.

Higher insurance costs will add to cost of living pressures facing consumers, with UK official budget forecasters predicting households will face a record hit to living standards over the next two years.

Double-digit inflation is leading to higher costs for insurers that they are finding difficult to absorb, said the ABI’s Jonathan Fong.

($1 = 0.8163 pounds)