Car Insurance Increase is the Highest in Five Years
Unfortunately, the cost of car insurance is on the rise. Last year’s insurance prices were the highest in five years. Worse yet, it doesn’t look like this trend is going to change any time soon. Learn more about rapidly rising car insurance prices here.
An Expensive End to 2015
The final three months of 2015 saw the typical comprehensive premium in the UK rise by 7%. And it’s no coincidence that this happened around the same time that Insurance Premium Tax increased from 6% to 9.5%. However, rather than insurers forking out for the price of the tax hike, the costs were passed onto consumers in higher premiums.
In fact, AA revealed a study which showed the cost of car insurance had increased by just over £100 in just 12 months. At the end of 2014, the average cost of a comprehensive policy was £520.06, whereas at the end of last year, it had risen to a staggering £625.70.
AA’s benchmark British Insurance Premium Index reveals that last year the shop around quote, an average of the five cheapest quotes identified, rose by 4.8% in the three months running up to September 30th. Unfortunately for drivers, this was not the first, but the second consecutive quarterly increase to occur in the year.
Who Bears the Brunt of the Price Increase?
With more than 8% of older drivers being added to the typical shop around quote, it may seem as though this age group bears the brunt of the price increase. Over the year, premiums for older drivers have gone up by over a fifth. However, young drivers have seen their premiums increase by 4% which goes to show that all drivers are affected by this sharp rise.
No End in Sight
According to Steve Fletcher, Head of Data Services at Confused.com, there are no signs that the upward trend is going to end any time soon. Fletcher has said that for 11 months running, premiums have not decreased therefore it’s likely that the trend of rising prices will continue.
What does this mean? Well, Fletcher has said that going forward, “the average comprehensive cover premium could soon exceed the £858 a year high that we saw during 2011”. Not exactly what we want to hear.
So, it doesn't look as though things are going to improve any time soon. If you’d like to learn how car insurance is calculated, take a look here.
Alternatively, if you’re interested in selling your private number plate to help soften the blow of the continuously rising car insurance costs, look no further than Primo Registrations. We’re more than happy to help you cash in on your private plates.