Into Overdrive – Cost of car insurance hits new high, official stats reveal. Don’t pay more than you need to
The cost of motor insurance moved up yet another gear in 2017, official data shows.
The average comprehensive premium was up by a whopping 9%, adding an extra £40 to a policy.
The findings come from newly released data from the Association of British Insurers. Their figures tracks what motorists actually pay for insurance, rather than just quotes.
And its latest Motor Insurance Premium Tracker shows the cost of motor insurance was £493 in the final quarter of 2017.
That’s the highest quarterly figure since the ABI began collecting the data in 2012, and it’s up 6% on the same quarter in 2016.
The average premium paid over the whole of 2017 was £481 – 9% higher than 2016.
The average cost of motor cover has leapt by 29% in just four years.
The data clearly shows motorists who simply accept any old renewal quote from their insurer are going to be paying through the nose. Shopping around for the right cover at the best price is the only way to make sure you get a decent deal and don’t waste money.
The ABI is urging the government to help bring down the cost of car insurance by quickly introducing reforms to how compensation for large personal injury awards are adjusted (known as the Discount Rate) to ensure a fairer system for claimants and insurance customers.
It also wants it to push ahead with reforms to how lower value whiplash-style claims are handled.
Since 2013 there has been a rise in these claims reported to the government’s compensation Recovery Unit.
Frozen insurance tax
It also wants to see the insurance premium tax frozen at its current 12%.
Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said: “The rising cost of motor insurance shows no sign of abating.
“Changes to how compensation pay-outs are calculated, Insurance Premium Tax, more whiplash-style claims and rising repair bills are all piling on the pressure for cash-strapped drivers.
“The Government must urgently bring forward relief for motorists by introducing its reforms to create a fairer compensation system, and tackling low value whiplash style claims without delay, as well as freezing Insurance Premium Tax. It is time cash-strapped motorists got a break.”
Meanwhile, avoid being clobbered by ever rising car insurance prices – get a quote that can save you more money than ever before ….
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.