According to the latest AA British Insurance Premium Index covering the last quarter of 2016, there has been a large rise in car insurance premiums in that quarter. The average quote rose by 5.8% with this equating to an increase of £34.69 per annum to £633.06 per annum for fully comprehensive cover and by 8.9% for third party fire and theft with this amounting to a rise of £77.05 per annum to £940.56 per annum.
The AA British insurance Premium Index reveals a large rise in car insurance premiums in Q4 of 2016
As you can see, the cost of third party fire and theft cover is greater than that of comprehensive cover yet the later provides greater cover.
When comparing the last quarter of 2015 with the last quarter of 2016, comprehensive cover has gone up by 11.7% (a rise of £66.35 per annum) and third party fire and theft has increased by 19.4% (a rise of £152.90 per annum).
Apparently, it is things like uninsured motorists, Insurance Premium Tax (IPT), damage caused by accidents and claims for injury that have had an impact on premiums going up.
Premiums have been on the increase for around 2 years and we are due to see another increase in IPT in June of this year of 2% that will result in premiums increasing further. It will be interesting to see when or even if motor insurance premiums will stop going up.
Motorists have also had to face increasing fuel costs in recent weeks that, when added to car insurance premiums increasing, they could have done without.
Perhaps this will encourage more drivers to review the cost of their car insurance when they receive their renewal notices and try to get the cover they require cheaper elsewhere. With so many providers, there is no doubt a great deal of competition between car insurers so it could be to your advantageous to shop around. One way of doing this is to use the services of a price comparison website or indeed more than one such website. Quotes can be quickly obtained from a number of insurers by keying in the requested details only once. Do bear in mind that not all car insurance providers use a price comparison website.
