You are here: Home - Insurance - News -

Motor insurance up 9% as drivers hit with ‘triple whammy’ of rising costs

0
Written by:
31/10/2016
The average comprehensive motor insurance premium paid rose by 9% over the last year adding an extra £38 to the typical policy.

According to the Association of British Insurers (ABI) Quarterly Motor Insurance Premium Tracker – which surveys what consumers actually pay for their cover –  the average premium paid has risen from £402 to £440 in one year.

It said honest drivers have been hit with a ‘triple whammy’ of price rises.

The average bodily injury claim settled so far this year has risen by 5% to £10,955; vehicle repair costs have risen 25% in the last three years to an average of £1,665; and insurance premium tax (IPT) has risen twice in under a year adding an extra 10% to the cost of motor insurance.

Rob Cummings, ABI’s head of motor and liability, said: “Insurers are fighting the corner of hard-pressed motorists, despite facing a triple whammy of rising costs from personal injury claims, repair bills and insurance premium tax.

“The government has a key role to play in ensuring the best insurance deals for honest motorists. They need to urgently consult on the planned reforms to address the compensation culture, which honest motorists have been waiting nearly a year for them to introduce, and avoid any further hikes in insurance premium tax.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week