Motorists in Britain should brace for another year of steep insurance rises as providers deal with rising costs, industry figures have warned. 

Admiral Group will continue increasing motor insurance prices and expects the rest of the market to follow suit, chief executive Cristina Nestares said in an August earnings call. 

The view is reflected in a report by EY predicting a 16pc rise in prices in 2023, followed by a 11pc jump in 2024.

Car insurance is one of the starkest examples of inflation in the UK, with transport insurance prices rising almost 50pc in the year to July, according to data from the Office for National Statistics. 

The Association of British Insurers said average car cover reached £511 in the second quarter — the highest price tag since it started collecting the data in 2012.

It comes as insurers struggle with rising costs, with EY predicting that insurers will spend £108.50 for every £100 taken in premiums in 2023.

Direct Line shares have fallen around 28pc so far this year after several profit warnings and the resignation of its chief executive in January. 

Mohammad Khan, who leads PwC’s general insurance practice in the UK, warned: “Although CPI is forecast to reduce at the end of this year, if you look at the factors explaining why claims are going up, those factors aren’t going to change over the coming 12 months.”

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