A Fleet News survey found that fleet decision-makers expect insurance premiums to rise in the next 12 months, with 73% predicting increases following steady growth in recent years. However, comparison site confused.com recently reported the first fall in premiums in nearly three years, hinting at market stabilisation.
Rachael Jones, Auto Trader’s director of automotive finance, said on Fleet News Quarterly Market Insight: “Insurance costs, even compared to historical norms, are very high, particularly for younger drivers with quotes for 17-18-year-olds well over £2500 pounds a year on average.”
Despite rising premiums, Jones noted strong demand for used and new cars, with more focus on running costs.
Jones added: “I think EVs is one to watch... premiums for electric vehicle insurance could still rise. There’s not a lot of data to talk to how much repairs might cost... that’s probably one to keep an eye on.”