Whilst car insurance premiums have fallen for the first time in two years, the impact of rising costs year-on-year are still to hit those yet to renew their insurance in 2024. With up to 10% of British adults not aware that motor insurance is compulsory, and an estimated 300,000 uninsured drivers on the roads every day, MIB (Motor Insurers’ Bureau) are calling on those needing to take out a new policy to make sure they remain insured, rather than face the consequences.

According to the ABI (Association of British Insurers), motor premiums fell by 2% in April-June compared to the first quarter of 2024. This is the first decrease in two years and, following the 1% rise in January-March, indicates a potential easing in the rises seen throughout 2023.

On the face of it, this is certainly good news. However, costs are still just £12 off the all-time high, while annual increases of up to 21% compared to 2023 renewal costs are yet to hit the wallets of those still to renew. This means around 14 million households are to be hit by a likely premium rise.

Shockingly, according to a YouGov study commissioned by MIB, 10% of the British public are not aware that motor insurance is compulsory for any vehicle used on a public road. MIB, the UK entity that exists to protect people from the devastation of uninsured and hit-and-run drivers, is raising awareness of the need for continuous insurance, appropriate for the driver, vehicle and journey purpose. This means ensuring your policy covers you for commuting or business use, if necessary, and taking out cover for specialised use such as hire-and-reward if you use the vehicle for delivering pizzas or parcels, for example.

For those not maintaining continuous motor insurance for vehicles used on public roads, the consequences can be severe. Whilst the fixed penalty notice is £300, should the case go to court the fine is unlimited. On top of this, drivers receive 6 points on their licence, vehicles may be seized and even crushed, and those with endorsed licences could find they struggle during job searches and with taking out future insurance policies.

MIB are encouraging all motorists to explore legal ways in which they can minimise any premium increases during their policy renewal. This may include:

• Renewing early – Research suggests that premiums are likely to be at their lowest 20-26 days before your renewal is due. This alone could save you a considerable amount of money.
• Black Box – consider a policy with a black box, as this reduces the risk to the insurer.
• Shop around – use comparison sites, insurers own websites, or see if a BIBA-registered Broker can secure you a deal. You can also contact your current insurer too to see if they can reduce the cost. Never allow your policy to simply auto-renew.
• Combine policies – consider one provider for multiple insurance policies, such as multi-car or car and home insurance, as some offer discounts.
• Smaller vehicles – in some instances, a smaller, less powerful vehicle may be cheaper to insure.
• Electoral roll – being on the electoral role can be part of the ID check to reduce fraud, lowering the risk to the insurer.

James Dalton, Chief Services Officer at MIB, said: “It’s really important that we continue doing all we can to reduce the level of uninsured driving on the roads – having 300,000 uninsured drivers on UK roads every day is hugely unfair to those who are insured, who effectively have to pay through their premiums for all claims made to MIB.

"We know times are tough for many people right now and increased cost-of-living pressures, including motor insurance premiums, may cause more people to make the wrong decision to drive uninsured, but this is not the right way to save money.

“We are encouraging people to ensure they maintain continuous, appropriate insurance on their vehicle, whilst reminding them to look at ways to legally reduce their premiums. While we understand the challenges many are facing, our message is that driving uninsured is never worth the risk.”