Pricing consultancy Pearson Ham Group has said motor insurance premiums hit an all-time high in August when they were 41% higher than the same month last year. The analysis found that motorists were quoted an average insurance price of £511, which equated to an increase of 4.8% on the previous month.

Stephen Kennedy, director at Pearson Ham Group, said: “While the growth in car insurance pricing was less acute in August, it still peaked to reach 41% higher than last year, a record all-time high.

“The costs of repair, replacement and labour have risen significantly impacting both insurers and motorists alike. While there are early indicators that the situation will soon normalise, how sustainable the situation is remains to be seen.”

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