Admiral hiked prices by 20% during the first half of the year in response to high inflation and repair costs.
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.
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."
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.
Paint and material costs have increased by nearly 16%, with the average price of second-hand cars rising 19%, it found.
Mr Britzman said Admiral had been increasing its prices ahead of its competitors but now the rest of the market had caught up, which should help “soften the number of customers leaving the firm”.
This is the best summary I could come up with:
Admiral hiked prices by 20% during the first half of the year in response to high inflation and repair costs.
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.
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."
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.
Paint and material costs have increased by nearly 16%, with the average price of second-hand cars rising 19%, it found.
Mr Britzman said Admiral had been increasing its prices ahead of its competitors but now the rest of the market had caught up, which should help “soften the number of customers leaving the firm”.
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