WHY HAS MY CAR INSURANCE INCREASED SO MUCH?

Q I have heard that the soaring cost of insurance is a result of the high cost of repairing electric cars. I’ve also been told it was age-related, which seems unfair, as surely younger drivers are more likely to have accidents. Is either explanation true?

– WS A The reason is simple: insurers are having to pay out more. In fact, £9.9 billion was paid out in claims last year – a new record. Repair costs have risen at a rate above that of inflation for several years. That, combined with the fact that modern cars have costly high-tech fitments such as radar units, means insurers are having to pay more to fix damaged cars. So why not write them off ? Because the cost of buying replacements has risen, too.

The number of cars being stolen has also risen. Between 2022 and 2023, vehicle theft increased by 8 per cent, with thefts from vehicles increasing by 9.9 per cent over the same period.

Thieves are developing new ways to get around car security – keyless entry systems that are prone to relay attacks don’t help – and together with a seeming lack of police ability to tackle the issue (only 2.12 per cent of all car thefts from July 2022 to June 2023 led to arrests and charges), that has led to thefts going up. Naturally this increases costs for insurers.

What’s more, the style and motive for car theft has changed. The joyriders of the 1990s weren’t discerning about which cars they hot-wired. Those that were stolen were cheaper to replace and, crucially, were often recovered.

Those joyriders have been replaced by organised gangs stealing cars to order, usually petrol or diesel models from premium marques that can be sold abroad with ease. Not only are insurers on the hook for the much higher cost of replacing those cars, they’re also far less likely to recoup any of their payouts.

And, yes, a driver’s age also plays a part – although not in an entirely fair way. Insurers still apply a weighting to older drivers’ premiums. The ageing population and increase in numbers of older drivers on the roads will contribute to the rise in premiums.

How to get around it? Choosing a non-premium brand with lower repair costs is probably a good start. uk and include your subscriber number

insurers paid out a record £9.9 billion in claims last year, with repair and replacement costs, plus theft, the main causes

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