UK car insurance cost up by third despite smaller rise in payouts

Disparity, along with lower increases for car cover in rest of Europe raises questions about motor insurance in Britain

UK insurers have revealed the amount they paid out for motor claims went up by about 18% last year, even as British drivers faced premium increases of more than a third – far above the rises in the rest of Europe.

The Association of British Insurers (ABI) put the average increase for car cover in the UK at 34%, but many drivers have seen rises far exceed that, even doubling in the case of electric vehicles (EVs).