Source: Insurance Age | 09 Oct 2015
Categories: Broker, Insurer
Tags: Confused.com | Towers Watson
Confused.com index in association with Towers Watson cites market reaction to increasing claims costs.
Motorists paid £47 or 8.1% more for their comprehensive car insurance premiums in the third quarter of 2015 compared with the same period last year according to a Confused.com car insurance price index in association with Towers Watson.
That represents the biggest quarterly rise recorded since 2010 by the index which is based on data compiled from almost two million customer quotes.
The increase means the average premium for an annual comprehensive car insurance policy is now £629 according to the research.
Third party fire and theft policies also became more expensive with a 7% quarterly price increasing the average quoted premium by £69 to £1,056. Overall it represents an annual third-quarter rise of 10%.
The last 12 months have seen a steady increase in comprehensive cover prices for motorists after three years of falling premiums, the index states.
It added price increases in the third quarter reflected a wide range of age, vehicle type and regional premium movements with higher group vehicles experiencing the largest rises.
Across the UK drivers in the west of England experienced the largest average annual rise in premiums at around 12%, followed by those in the east and Northern Ireland, both at 11%.
Stephen Jones, UK head of P&C Pricing at Towers Watson, said: "The main story here is around a widespread market reaction to increasing claims costs, especially own vehicle damage claims."
Steve Sanders, finance director at Confused.com, added: "It would seem that the days of cheap car insurance really are over - just like six years ago we're seeing substantial increases in prices for most UK motorists.
"And with the Government's increase in insurance premium tax, rising from 6 to 9.5 per cent this November, we're likely to see continued inflation in car insurance prices across the rest of 2015, and into 2016
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