Car insurance premiums reach highest price since 2017
Premiums are increasing after a period of falling prices.
Car insurance premiums are going up again after a period of falling. This is thought to be because repairs are becoming more expensive.
An annual fully comprehensive car insurance policy for an individual who does their research and shops around was £609.93 on average in the last quarter of 2018. This represents an increase of 2.7% over the quarter, but is still down 5.9% compared to the past 12 months, according to the AA.
The organisation’s latest report reveals that this is the first increase in rates since the second quarter of 2017.
Janet Connor, the AA’s director of insurance said: ‘This is the first spike in car insurance premiums since the beginning of 2017.’
Insurance companies are under mounting pressure due to the rising costs of crash repairs, ‘thanks to the growing complexity of modern cars.’
She continued: ‘Underlying all of this of course are concerns surrounding Brexit. Regardless of what the final deal looks like, the market has continued to battle with the value of sterling.
‘This has led to the rising cost of imported car parts, further adding costs to the car repair industry which ultimately finds its way to the premiums we pay.’
Connor added that young drivers could be the worst off, with premiums now averaging £1,317.
‘Young and newly qualified drivers face a significant penalty when it comes to insurance pricing, not least because they have not built up a no claim bonus. So it is no surprise that some take the risk of driving without insurance.’
Now that premiums are on the rise again, it is very important that drivers shop around and search for the best car insurance deals.
You can do this by using a price comparison site like A Spokesman Said to make sure you read up on all the options available and pick the one best suited to your vehicle and driving habits.
This way, you’ll get the right policy for your needs and you’ll be able to avoid the price hikes as they sweep across the industry.
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But these battles cost us money. You could help us fund these fights by using our price comparison site, A Spokesman Said for your energy, car insurance and household bills.
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When did you last switch your car insurance provider?
Last year 65% of customers didn't switch their car insurance to try and get a better deal.