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Just how much has your #car #insurance gone up?

By 1st April 2018 No Comments
Looking at confused.com website it shows a 14% increase!though the increase was lower than the previous year.

​Comprehensive car insurance premiums have continued to rise during the final quarter of 2016, with motorists now paying on average £95, or 14%, more than they were this time last year.

The figures came from the latest Confused.com Car Insurance Price Index in association with Willis Towers Watson.

According to the research, which is based on price data compiled from almost two million customer quotes, the result represents a 4.1% quarterly increase (or £30).

​This compares with the 6.9% quarterly increase (£43) for the same period in 2015.

Comprehensive cover prices have been steadily increasing since 2014, with figures from the Price Index showing monthly price increases recorded in 10 of the last 12 months of 2016.

Slowdown
Willis Towers Watson, stated that although these latest quarterly figures suggest a continuing upward trend for 2017, they also indicate a possible slowdown in the actual rate at which premiums are rising.

Stephen Jones, UK Head of P&C Pricing at Willis Towers Watson, commented: “It’s not unusual for price increases to soften around the end of the year, with an annual increase of 14% in the final quarter of 2016 compared to the 19% rise we saw six months earlier.

“However, the lower Q4 increase relative to that in 2015 may herald something of an underlying slowdown in the rate of premium increases seen following recent exceptional influences on repair costs.”

He continued: “In 2017, however, repair cost inflation is expected to remain an influence on premiums, especially given exchange rate movements following the Brexit vote and that insurance premium tax will increase from 10% to 12% in June, further pushing up costs for consumers.”

The increase in the fourth quarter of 2016 means that the average premium for an annual comprehensive car insurance policy has now reached £767.

The cost of third party, fire and theft (TPFT) policies has risen at a similar pace, with prices going up by 4.7% in the last quarter, increasing the average quoted premium by £59 to £1311 – an annual increase of 16.1%.

Regions
The findings detailed that price increases in the final quarter in 2016 affected all vehicle types and reflected a wide range of age and regional premium movements.

The cost of comprehensive car insurance rose across the UK with every region experiencing double digit increases over the year.

Drivers in the East and North East of Scotland were worst off with their insurance premiums rising on average by 20%, an annual increase of £94 to £563.

More locally focused data showed drivers in Swindon were hit by one of the highest increases in England, 21% to £592, compared with Uxbridge which experienced the lowest annual rise of 5% to £1266.

Younger drivers aged between 17 and 20 have experienced the lowest increases over the last 12 months.

In particular 18-year-olds experienced the lowest annual increase of 4.7% to £2109 whilst almost every other age group was affected by double-digit increases in 2016.

New highs
Steve Fletcher, head of data services at Confused added: “Although the increase isn’t as drastic as the last time the industry went through rapid price rises, it is still expected to continue climbing.

“There are new highs for third party, fire and theft cover while comprehensive has remained steady.”

Tim Kelly

Tim Kelly

Tim is a highly qualified Independent Engineer with 20 years experience as an Engineering Assessor of damaged vehicles.

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