Upward Trend In Motor Insurance Premiums

Unfortunately, average car insurance premiums have been increasing over quite a lengthy period that is disappointing from a motorist’s point of view especially as we have also seen fuel costs rise of late. Information contained within the AA British Insurance Premium Index for the third quarter of 2016 would indicate that there has been a significant rise in such premiums when comparing both Q2 and Q3 of this year as well as Q3 of 2016 with Q3 of 2015.

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The average cost of car insurance has been on the increase for some time.

The average cost of car insurance for fully comprehensive cover in the third quarter of 2016 was £585.84 per annum. This is an increase of 3.7% when compared with the previous quarter when the figure was £564.94 per annum. Back in the third quarter of last year the average premium for such cover was £503.90 per annum so there has been quite a large increase of 16.3% in the space of twelve months when comparing that figure with the same quarter of 2016.

It is interesting to read that the average cost of third party fire and theft car insurance stood at £851.55 per annum in Q3 of 2016 with this being an increase of 4.9% when compared with the second quarter of 2016 when it would have cost an average of £811.63 per annum. Back in the third quarter of last year the average cost of such cover was £724.14 per annum so there has been quite a large increase of 17.6%.

When you look at different parts of the UK based upon TV regions, it is Northern Ireland that has seen the biggest % rise when comparing Q2 and Q3 of 2016. Between those periods, average premiums rose from £774.25 per annum to £861.79 per annum. That is a rise of 11.3%. Motorists living in Scotland are paying the lowest average premium. In the third quarter of 2016 the figure was £422.10 per annum with this being a 3.7% rise when compared with the second quarter of 2016 when the cost averaged £406.89 per annum.

It is drivers in the 17 to 22 year old age bracket who are paying the most for their car insurance. In Q3 of 2016, such motorists paid an average of £1, 286.96 with this being a rise of 3.6% when compared with the previous quarter when premiums averaged £1,242.74 per annum. Those in the 60 to 69 age bracket paid the least in car insurance premiums in the third quarter of 2016 with the average amount being £366.37 per annum. Having said that, that age group saw the biggest % rise when comparing Q2 and Q3 of 2016 when premiums rose by 5.4% on average.