How a quirky car has beaten the soaring premium trend

Car insurance premiums are at their highest ever, with the average driver paying almost £1,000 a year.

Research by comparison site Confused. com found that the typical insurance premium now costs £366 more than 12 months ago – up 58pc.

But for Tony Parrack, his car insurance premium went up by a mere 50p.

The Londoner’s car is a four-yearold Morgan, one of the very last models of its production run. “It’s a stupid car,” says Mr Parrack, 69. “It looks like it’s straight out of the 1940s.”

He pays just £390 a year for his insurance. The reason, he believes, is because his car is so outlandish that it puts off thieves.

In reality, Mr Parrack qualifies for classic car insurance, which is typically cheaper as their owners rarely drive their cars and they are generally kept in secure garages.

Mr Parrack says he managed to nail down a cheap insurance policy by joining Morgan’s “members’ club”, which has a restricted mileage of 3-4,000 miles a year.

Motor premiums surged after the pandemic as driving habits fluctuated wildly. Road accidents dropped by 26pc in lockdown, and driving habits only began to return to normal last year.

According to insurers, it is the rising cost of repairs that is responsible for soaring premiums. Last year, the Association of British Insurers said the cost of repairs had risen by a third in the first half of 2023.

But whether this justifies such rises in premiums is hotly contested. Experts and MPs alike have hinted that there are issues with insurers’ risk models and that some firms are taking advantage of a high-inflation environment to raise premiums beyond what is reasonable.

Almost two in three drivers reported a rise in premiums at renewal in the first half of 2023, according to Confused.com.

However, 46pc of those who looked for an alternative found they were able to save money.

To keep costs low, the site recommends “increasing security, reviewing mileage or adjusting your excess could bring your overall cost down”. adding that with prices high, the market is more competitive than ever.