An upsurge in expensive claims, repairs and an imminent tax rise are all to blame, says Consumer Intelligence
Average car insurance invoices have jumped by more than 13% over the previous year following a surge in claims that were high-priced, per new data.
Motorists seem to be paying the price for progress in technology, as repairs to cameras, sensors and other hi-tech features can encounter thousands of pounds. The bad news for motorists is that an imminent rise in the tax on insurance is likely to add a few more pounds to the cost of a coverage.
Nevertheless, drivers in north-west London and England are paying up to 50% more than the national average. The average bill for a motorist in northwest England is £1,177 following a 17.3% leap over 12 months, while in London it’s risen 16.7% to £1,068.
One of the largest UK insurers LV= proposed prices were set to increase further this year.
Consumer Intelligence – whose figures are used by the authorities’ Office for National Statistics to calculate official inflation data – said there were “huge differences across the country and between age groups. It compared the prices offered the major price comparison websites and leading direct insurers. to 3,600 people by all
Younger motorists are paying the maximum invoices: the typical premium for an under-25 is £1,831, although costs for this age group are growing at a somewhat slower rate. Senior drivers are experiencing higher rises – commonly up 15.3% over the year – but their average yearly statement, as calculated by averaging out the five most affordable premiums, is considerably lower at £348.
Consumer Intelligence’s data reveals that the most affordable place to insure a car is Scotland, where the typical premium is £562.
The government said that if insurers passed the cost of this increase on to their customers, the average motor insurance premium would grow by £2 per year.
Ian Hughes, chief executive of Consumer Intelligence, said: “The latest increase in claims that are growing, in addition to insurance premium tax which takes effect next month, are driving the rise in premiums.”
LV= warned: Because of the mix of decreased investment income and higher claims inflation, we expect to see the strengthening of motor speeds continue in the second half of the year.”
