But despite losing thousands of customers on the back of steep price rises, which has seen motorists paying more than ever for their insurance, the insurer saw profits rising be 4% to almost £234 million.
According to an analysis of 28 million policies by the Association of British Insurers (ABI), the average premium across the industry in the three months to the end of June was £511 – 21% higher than the same period last year.
In a report by BBC, Admiral’s Group CEO, Milena Mondini de Focatiis said: “We recognise that these are challenging times for many people.”
As the cost of living crisis deepened in Q4 and Q1 of 2023, Admiral raised prices by 20% in response to high inflation and repair costs. Meanwhile, the UK Times has reported the further price hikes are on the way because the cost of spare parts, labour and replacement vehicles pushes premiums to new levels.
Speaking about the situation, which could result in a 40% rise in premium costs moving forward, Matt Britzman, equity analyst at Hargreaves Lansdown, said: “The bad news for consumers is that car insurance is now another inflated cost to try and manage as part of the ever-increasing pressures on income.
“Some customers have had enough, and Admiral saw a 7% dip in customer numbers year-on-year. But for Admiral, that’s a loss worth taking as maintaining profitable insurance contracts is key, even if it means losing a few customers along the way.”
As of January 2022, recent legislation prohibits car and home insurers from enticing new customers with inexpensive offers and subsequently raising prices upon renewal without any alteration in circumstances
A statement issued by moneysavingexpert.com “While insurers can no longer charge renewing customers more than newbies, that doesn’t mean you’ll get the best price by staying put,”
“Different insurers have different prices so you should still compare to see how much you could save from switching.
“Our advice has always been to never just auto-renew – instead combine comparison sites to scour 100s of insurers in minutes.”
