Why has my household/motor insurance gone up?

July 29, 2025

Why has my household/motor insurance gone up?

There are several reasons that your insurance premium has increased.

Market-wide factors affecting home and motor insurance: High inflation has increased repair and replacement costs for properties, vehicles, and parts. Rising labour costs and supply chain issues have also driven up insurers' claims expenses.

For household insurance, increased extreme weather events have led to more flooding and storm damage claims. Building material and labour costs have risen significantly. The growing risk of subsidence due to climate change has also impacted premiums.

For motor insurance, Modern cars are more expensive to repair due to advanced technology and electronics. Vehicle repair costs have risen by 30% in recent years*. Parts shortages have also increased repair times and costs. Rising theft rates of catalytic converters and keyless cars have also contributed to higher premiums.

Personal factors that could affect your specific premium: Changes to your circumstances, such as moving house, getting a new car, or making a claim in the previous year. Your insurance history, including any claims or changes to your no-claims bonus, directly impacts your premium.

* https://www.abi.org.uk/products-and-issues/topics-and-issues/cost-of-living-crisis