Allan,

this from The Times a couple of days ago:

'Motor insurance premiums are more than a fifth higher than they were a year ago despite the first quarterly decline in average prices in two years, according to industry figures.

The average cost of car cover dipped by 2 per cent to £622 over the three months to the end of June from a record £635 the previous quarter but remained 21 per cent higher than 12 months earlier, data from the Association of British Insurers shows.'

The recent surge in prices has made car cover unaffordable for some households. Rocio Concha, director of policy and advocacy at Which?, the consumer rights group, said: “With premiums rising significantly over the past year, many drivers opening their renewal quotes will still get a nasty shock.”

Insurers argue that motor premiums have risen because the cost of handling claims has soared in recent years. Higher prices for spare parts and second-hand cars, along with rising wages and supply chain problems in repair shops, have all fuelled so-called claims inflation, prompting insurers to respond by lifting prices for customers. The Association of British Insurers said its latest data showed that repair costs were 28 per cent higher over 12 months.'