Car insurer Admiral has lost thousands of customers on the back of steep price rises which mean motorists are paying more than ever for insurance.
The British insurer said profits had risen 4% to almost £234m despite losing 380,000 customers over the last year.
Its boss Milena Mondini de Focatiis said: “We recognise that these are challenging times for many people.”
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.
“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.”
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.