Unfortunately for many motorists, motor insurance premiums have continued to go up in the last few years for a number of reasons. This is borne out by the Association of British Insurer’s (ABI) most recent Motor Insurance Premium Tracker. The tracker uses the premiums paid by motorists rather than the quotes that people obtain from insurers.
In 2017, the average premium that motorists paid for their cover went up by 9% per annum when compared with 2016 to £481 per annum. When compared with the previous year this is an increase of £40 per annum. This is no small sum.
Another interesting statistic is that the average cost of insuring a motor vehicle has gone up by 29% since back in 2014. We are sure that you will agree this is a significant increase and one that motorists could have done without.
So, why has the price charged by insurance companies for car insurance gone up in recent years? Well, there are no doubt a number of factors but insurers have had to pay out huge sums of money in respect of whiplash claims and it is hoped that the Government introduce legislation to improve how claims for whiplash for smaller sums are dealt with. Another factor has been the number of increases in the percentage people pay for Insurance Premium Tax (IPT)- at the moment this rate is 12%. The change in the Ogden Discount Rate will no doubt have had a significant impact upon how much insurers have had to set aside to meet claims relating to personal injuries.
Nowadays, it is quite easy to obtain a number of quotes for car insurance simply by using the Internet. For instance, there are numerous price comparison websites available that have an extensive panel of motor insurers. It is so quick to obtain one or more competitive quotes whether you have just passed your driving test and are looking for motor insurance for the first time or you have many years experience of driving and your motor insurance renewal date is fast approaching.