AA reviews rise in car insurance premiums

Drivers are paying out nearly £82 much more for car insurance than a yr ago and therefore are probably to discover premiums rise further, according to the most current figures in the Automobile Association (AA).

The common annual price of the new policy rose to £586 within the three months to your end of September, a sixteen.3% raise on the very same period in 2015, the motoring group mentioned.

The AA explained premiums have been driven up by continuing issues with whiplash claims and consumers’ expanding tendency to shop all around for any new policy every year.

Its index of premiums compares the price from the 5 most affordable policies to get a array of unique drivers. Insurers had been turning into significantly less inclined to present low introductory costs to appeal to new consumers, the AA mentioned.

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Other reports have recommended that the value of motor cover continues to be pushed up by advances in technologies.

Additions to vehicles such as parking sensors on bumpers have elevated the price of repairs just after accidents. In September, insurer LV= warned that it may need to maximize premiums after the expense of accident payouts rose.

Michael Lloyd, AA’s director of insurance coverage, stated: “We are witnessing sustained rate increases once once again, which can be lousy news for drivers. I can not see an immediate end to the latest upward trend.”

The AA index showed that the value of cover rose most steeply for 60 to 69-year-old drivers, with best-buy policies up by five.4% within the third quarter to an common of £366. Nevertheless, their premiums remained reduced than other age groups.

Younger drivers continued to pay far in extra of other motorists, with the cheapest policies averaging £1,287, a rise of three.6% due to the fact spring this 12 months.

Motorists in Northern Ireland had the highest premiums, with individuals who shopped close to for a quote having to pay an common of £862. By contrast, average premiums expense £422 a yr in Scotland.

Since the end of September, insurance premium tax (IPT) has gone up to the 2nd time in a year.

The AA known as over the government to resist a further rise inside the autumn statement upcoming month and expressed disappointment at the Ministry of Justice’s decision to delay planned reforms designed to lessen whiplash claims.

“The whiplash epidemic has dogged the British motor insurance coverage marketplace to get a decade and continues to perform so,” Lloyd stated. “I do recognise that whiplash can be quite a severe and debilitating ailment. However the activities of declare firms make daily life more tricky for anyone which has a genuine damage.”




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