The ABI Quarterly Motor Insurance Premium Tracker covering the third quarter of 2016 shows an increase in such premiums in the last 12 months. This is not good news from the motorist’s point of view.
According to the Association of British Insurers (ABI), the average cost of comprehensive car insurance has risen by 9% in the 12 months to the end of September 2016.
In the last year, the average premium for fully comprehensive car insurance has increased by 9%. This means that the motorist is paying, on average, an extra £38 per annum. The average premium is £440 per annum for such cover.
When comparing the third quarter’s figures in 2016 with the previous quarter this reveals an increase of 1%.
There are a variety of factors that have played their part in seeing average motor insurance premiums rise. For instance, Insurance Premium Tax has gone up and it is estimated that this tax could add an additional 10% to how much motorists are paying for their cover. The cost of repairing vehicles has gone up considerably in the last three years. The average amounts being paid out for claims in respect of injuries to the body have gone up.
So, can the motorist do anything about rising premiums? Well, one option is to consider shopping around to see if the same adequate level of cover can be obtained cheaper from another insurer when the existing policy comes up for renewal. There are a number of ways to shop around such as by using one or more of the many price comparison websites, contacting some of the banks, building societies and the Post Office who help arrange car insurance, contacting an insurance company direct or popping into a local high street insurance broker.
The motorist may wish to make sure that the cover he or she has in place is based on up to date information. For instance, if the motorist used to travel 25,000 miles per annum in the vehicle when taking out the policy but now only does say 5,000 miles each year then, by notifying the insurer of the reduced mileage, may result in the premium reducing.
