High costs and complexity of repairing cars fitted with expensive technology increased premiums.
Motorists paid £44 or 6.5 percent more on average for their comprehensive car insurance premiums in the second quarter of 2016 compared with the same period last year according to a Confused.com car insurance price index in association with Willis Towers Watson.
This was due to the high costs and complexity of repairing cars fitted with expensive technology, it said.
Annual increase
The research also showed that this means compared with 12 months ago policies have jumped in price by 19.2% on average – the biggest annual rise recorded by the index since 2011 when prices peaked at £858.
Motorists paid £44 or 6.5 percent more on average for their comprehensive car insurance premiums in the second quarter of 2016 compared with the same period last year according to a Confused.com car insurance price index in association with Willis Towers Watson.
This was due to the high costs and complexity of repairing cars fitted with expensive technology, it said.
Annual increase
The research also showed that this means compared with 12 months ago policies have jumped in price by 19.2% on average – the biggest annual rise recorded by the index since 2011 when prices peaked at £858.
The increase means the average premium for an annual comprehensive car insurance policy is now £715.
Stephen Jones, UK head of P&C pricing at Willis Towers Watson, said: “Older drivers have seen the biggest increases in car insurance premiums, which are most likely to have been driven by inflationary pressures on claims costs, especially on vehicle damage repair costs.
The index revealed that prices experienced a brief plateau during the first quarter of 2016, however the underlying price trend for the last two years has remained steadily upwards.
Stephen Jones, UK head of P&C pricing at Willis Towers Watson, said: “Older drivers have seen the biggest increases in car insurance premiums, which are most likely to have been driven by inflationary pressures on claims costs, especially on vehicle damage repair costs.
Expensive tech
“While there are, unfortunately, relatively more collisions involving older motorists, what is contributing to premium increases are the cost and complexity of repairs, particularly as cars are fitted with more expensive technology.
“An increase in the number of accidents in the second half of 2015, together with increases in repair costs in multi-vehicle accidents flowing from a legal ruling in 2014, are also likely contributory factors.”
In a similar trend third party, fire and theft (TPFT) prices in the second quarter of 2016 increased sharply by 9.1 percent to £1231. This is the highest cost for TPFT insurance recorded by the Index since its launch in 2006.
“While there are, unfortunately, relatively more collisions involving older motorists, what is contributing to premium increases are the cost and complexity of repairs, particularly as cars are fitted with more expensive technology.
“An increase in the number of accidents in the second half of 2015, together with increases in repair costs in multi-vehicle accidents flowing from a legal ruling in 2014, are also likely contributory factors.”
In a similar trend third party, fire and theft (TPFT) prices in the second quarter of 2016 increased sharply by 9.1 percent to £1231. This is the highest cost for TPFT insurance recorded by the Index since its launch in 2006.
Regional
On a regional basis, the Scottish Highlands saw the biggest quarterly increase of 8.4 percent, while a rise of just 2 percent meant drivers in Central and North Wales received the lowest price jump.
Female drivers aged between 31 and 35 benefited from the lowest rises at 4.1 percent to £535 for comprehensive insurance.
Notably, male drives aged 36 and over experienced the highest quarterly price increases, ranging from 7.4 percent to 9.3 percent.
Notably, male drives aged 36 and over experienced the highest quarterly price increases, ranging from 7.4 percent to 9.3 percent.
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