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