The ABI, which tracks the actual premiums paid by drivers, found that prices had gone up for both new policies, and those renewing.
You'll pay £531 on average for new policies – a record high – and £428 for a renewed policy.
Comparison site Confused.com has reported that the average price quoted for car insurance went up to £629.
As these are averages, what you pay will depend on a number of factors, some of which you can't change, but some of which you can.
Here we explain how to save on car insurance even as average premiums rise.
Why have car insurance premiums increased?
Like most things, car insurance has been impacted by the rising cost of living. The price to repair and replace vehicles and their parts has increased.
Average paint costs for repairs have gone up 20%, while energy inflation has prompted an additional £71.75 energy cost to each car repair.
And the ABI has reported that an estimated 40% of all car works and repairs are slowing due delays in getting spare parts.
Over the longer term, driving and accidents hit an all-time low during the pandemic, so it was likely that the costs would slowly bounce back as we resumed life and people took back to the roads.
Find out more:Car insurance averages vs how much you actually pay
You could end up being quoted car insurance above the average because of factors that you can't do much about.
These could include being a younger or less experienced driver, living in a 'riskier' area or driving a more powerful car.
But other factors you can change, leading to cheaper quotes.
First and foremost this includes which insurer you opt for (more on that below), but also factors such as the excess you set, the add-ons (such as key cover) you include and whether you pay monthly or annually.
Find out more:How do you find cheap car insurance?
When the time comes for your insurance to be renewed, take your time with finding your next policy.
Follow these five tips to help you get a better car insurance deal.
1. Do your research
It's important you have a strong understanding of the prices and policies on offer to you before you commit to one.
A cheaper quote from another insurance can be used to haggle with your current insurer.
Find out more:2. Consider comprehensive policies
You'd think comprehensive car insurance would be more expensive than third-party cover, given you're effectively buying more insurance.
Yet in some cases comprehensive cover can prove cheaper, even if you never need to claim on it.
This is because insurers price in part on how risky they think certain types of drivers are, and drivers with third-party policies are sometimes considered riskier.
So when you're shopping around, it's important to get quotes for both comprehensive and third-party policies.
3. Set a realistic excess
One way to keep your insurance premiums down is to increase how much excess you're willing to pay if you get into an accident.
Voluntary excesses can vary; sums set at £100, £250 and £500 the most popular. If you were to set it at £500, this would lower your annual premium, but it means you would have to pay £500 upfront for every accident you get into.
It's vital that this is something you believe is within your budget, so you don't get forced off the road because you can't afford repairs.
4. Check your personal details
When you renew or apply for a policy, make sure your personal details are up to date and accurate.
5. Pay annually
While at the time of purchase monthly instalments seem like the more attractive option, allowing you to spread the cost over 12 months, you will pay more in the long run.
Paying one lump sum at the beginning of the policy, while an initial dent in your budget, is the cheaper option.
Which? Limited is registered in England and Wales to 2 Marylebone Road, London, NW1 4DF, company number 00677665 and is an Introducer Appointed Representative of Inspop.com Ltd for the introduction of non-investment motor and home insurance products (FRN 610689). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority to provide advice and arrange non-investment motor and home insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd.
source https://www.which.co.uk/news/article/increasing-insurance-premiums-how-to-find-the-best-deal-a7YZO9Y2IbOr