Insurance costs major worry to motorists & EV cover soars

Additionally, there is apprehension about not just the cost of running an existing car but buying a new one, with 46% mentioning this in the survey.

Paul Burgess, CEO at Startline Motor Finance, said, “Last year, motoring costs increased substantially across the board and car owners are clearly concerned about similar rises happening in 2024.

“Insurance and fuel costs are very much the main concerns. Many motorists saw their premiums rise well into double-digit percentages in 2023, which was something of an unexpected price shock.

“Also, while petrol and diesel have fallen to a two-year low, it appears the kind of volatility that car owners have experienced in recent times means that the price of fuel at the pumps remains an ongoing worry.”

Concerns about rising fuel costs are not just confined to drivers of petrol and diesel cars – 27% of those surveyed said they were worried about the cost of charging electric cars.

The cost of car insurance for electric vehicles (EVs) has typically risen by £313 year-on-year in November, according to new research from Compare the Market.

Annual car insurance cover for an electric vehicle in November 2023 cost £929 on average compared to £616 in November 2022.

The significant rise in electric vehicle premiums may in part be due to insurers facing higher repair costs. The rapid rise in inflation in the last couple of years will have likely impacted many areas of the motor repair industry including the cost of spare parts, energy, and hiring specialist mechanics, which in turn could be driving up repair costs for electric vehicles. Replacing some parts of electric vehicles such as new batteries can be particularly expensive.

MORE people were caught drug and drink-driving in the Vale in the lead up to Christmas than the year before.