Nobody wants to pay more for car insurance, but for millions of UK drivers, that's exactly what could be happening

Nobody wants to pay more for car insurance, but for millions of UK drivers, that's exactly what could be happening.

After 2 years of falling prices, sadly, car insurance in the UK has started creeping back up.

The average premium is now £719.

That's £8 more than 3 months ago.

This may seem small, but it's the first increase we've seen UK-wide in the last couple of years and could be a continuing trend.

So, why is this happening?

Well, fewer people are actually making claims, down 59% since 2020.

But when they do, it's costing insurers a lot more to fix.

The average claim payout has shot up 42% in the same period.

It's moved from £3,842 to £5,464.

And it's not just one type of claim.

Damage claims have more than doubled, up 105%.

Fire claims are up 99% and theft claims are up 64%.

Even something as simple as a windscreen replacement has increased by 44% compared to 5 years ago.

The reason, in short, is that modern cars are loaded with technology.

Simple repairs aren't so simple anymore.

Sensors need recalibrating.

Systems need resetting.

That pushes the cost of labour and parts up.

And ultimately, your premium, too.

Here's the silver lining, though.

Premiums are still 5% cheaper than this time last year.

Young drivers are saving the most when they shop around.

17-year-olds are paying £356 less than this time last year.

Shop around and do it early.

Getting a quote 28 days ahead of renewal could be 53% cheaper than leaving it to the last minute.

You can also add a named driver or check your annual mileage to help keep your premium down.

Just make sure you are the main driver so you aren't fronting.

Falsely claiming a more experienced person would be the main driver of the car would be illegal.

Prices could be heading up, but they don't have to hit you hard.

Get ahead of your renewal and you could still walk away with a better deal.