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By Angela Needham
Financial Journalist
Financial Journalist
Updated 22 June 2024
|Read time: 2 mins
|Read time: 2 mins
We understand that times are tough and bills are going up for everyone. With this guide, we also want to help explain why the insurance industry has seen such an increase in prices, as we recognise that it can be concerning.
Increased cost factors to consider
It's important to note that these price hikes stem from factors extending beyond individual driving habits. Rising claim costs and supply chain disruptions have significantly impacted industry prices along with many other external factors, including the following:
Inflation
The current inflation crisis has made a significant impact on the UK economy, which is also greatly affected by the insurance industry.
Car insurance costs have surged, with the Office of National Statistics (ONS) reporting a substantial 43% increase in average prices in June 2023, compared to the previous year.
Car repairs
The overall cost of car repairs has seen high increases of up to 33%* in the past year, due to:
- Increase in car technology
- The increased cost of materials
- Delays to parts and supply impact
- Increase in energy costs
- Increase in labour costs by up to 40%*.
This all adds a significant amount onto the overall cost of insurance.
Car theft
The ONS recently reported that vehicle theft was increasing 24.9% year on year with over 130,000 stolen in 2022. This has affected the availability of replacement vehicles and contributes to increasing costs.
If you need help
We’re doing everything we can to constantly monitor and review our car insurance prices to pass on any reductions as quickly as we can to our customers.
Our customers get peace of mind knowing we offer our best price first time to both new and renewal customers. Therefore there is no need to contact us to negotiate the best possible price. You will receive your renewal invite 21 days before your renewal date.
If you’re struggling to make your insurance payments, please get in touch with us and we’ll see how we can help.
Email us: customerservice@car.johnlewisfinance.com
Additional Support
You can also contact Money Wellness if you’re worried about your finances.
They provide free and impartial expert debt advice.
Call 0161 518 8285
Visit www.moneywellness.com
Not yet covered by John Lewis Car Insurance?
For more information on John Lewis Car Insurance, call 0330 024 0614 or get an online quote.
Calls may be monitored or recorded and charges will vary.
This article is for promotional or information purposes only. You must not rely on it as advice. Please contact a financial adviser if you need advice before you buy a financial product or service.
Read more car insurance guides here
Car insurance providers consider 'risk factors' when calculating a car insurance premium.
Once you have four or more years of no claims bonus on your car insurance, we’ll give you the opportunity to protect it.
Motor legal protection helps to cover any legal expenses associated with a car insurance claim.
John Lewis Money, John Lewis Finance, John Lewis Insurance and John Lewis & Partners are trading names of John Lewis plc. Registered office: 1 Drummond Gate, Pimlico, London SW1V 2QQ. Registered in England and Wales (company number: 233462).
John Lewis plc is an appointed representative (firm reference number: 416011) of Covéa Insurance plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (firm reference number: 202277).
John Lewis Car Insurance is underwritten by Covéa Insurance plc. Registered Office: A&B Mills, Dean Clough, Halifax, HX3 5AX. Registered in England and Wales (company number: 613259).
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