Motor insurance premiums highest ever
UK motor insurance premiums hit the highest levels ever recorded last quarter with rising tax, personal injury claims and repair costs the driving force behind the rise.
Over the last three months of 2016, the cost of an average annual car insurance policy in the UK grew to £462.
According to the Association of British Insurers (ABI), the organisation behind the figures, this is the highest ever recorded, up from the previous high of £443 from spring 2012.
Overall, the average premium grew by almost five per cent compared to the previous quarter.
For 2016 as a whole, motor insurance premiums were 9.3 per cent higher than the average premium for all of 2015.
Why have motor insurance premiums jumped?
One of the major reasons for the rise in average motor insurance premiums is the growing cost of vehicle repairs.
Increasingly complex electronics and technology in cars have resulted in average repair costs jumping by almost 32 per cent over the last three years, rising to an average of £1,678 in Q3.
Personal injury claims have also negatively impacted premiums, with average claims for bodily injuries rising to £10,674 in Q3, 2.3 per cent higher than the same period in 2015.
Three increases in Insurance Premium Tax have also hit motorists hard, doubling the rate from six per cent to 12 per cent in just over two years.
Have motorcyclists experienced the same increase?
The bad news for motorcyclists is that insurance costs in Q3 of 2016 were the highest they’ve been since 2013, based on insurance quotes through The Bike Insurer.
The good news is that The Bike Insurer has a Cheapest Price Guarantee. That means that if you find a cheaper quote anywhere else online, we’ll beat it.
So while you can’t help paying more, with The Bike Insurer you can make sure you’re not paying more than you need to.
On top of that, there are a couple of ways you can reduce the cost of your motorcycle insurance.
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