Index Reveals Rise In Car Insurance Premiums

You may be interested to read that, according to the AA British Insurance Premium Index covering the second quarter of this year, there was a further rise in car insurance premiums. This is disappointing news for the motorist but it may trigger more people to shop around to see if they can get a better deal on their motor insurance elsewhere when they receive their renewal notices or are looking for such cover for the first time.

Car insurance premiums are affected by a nunber of factors such as the number of road traffic accidents

The number of road traffic accidents no doubt has an impact on car insurance premiums.

The index revealed that the average cost of fully comprehensive car insurance rose by 2.3% in Q2 of 2016 from £555.92 per annum to £568.48 per annum. Back in Q2 of 2015, the average annual premium for such cover stood at £484.86 so there has been an increase of 17.2% in a year.

It is interesting that the average cost of third party fire and theft car insurance in Q2 2016 was £804.04 per annum which was an increase of 5.4% when compared with the first quarter of this year and was an increase of 17.3% in comparison to the second quarter of last year.

When you look at the average cost of car insurance on a regional basis, the index reveals that Northern Ireland is the most expensive with premiums averaging £804.02 per annum. Such premiums rose in Q2 by 7.8%. If you live in Scotland, you may be pleased to read that that region has the lowest average car insurance premiums at £404.22 per annum. Premiums rose in Scotland in Q2 of this year by 2.5%. London had an average car insurance premium of £700.26 per annum in Q2 of this year having gone up by 1.9% in comparison to the first quarter of this year. The lowest percentage rise was in Border and Tyne Tees where premiums increased by an average of 1.4% in the second quarter of 2016 to an average of £565.43 per annum.

Looking at the age of motorists, the index shows that it is the driver in the 17 to 22 year old age bracket who has seen the biggest average rise in Q2 of 2016. Such a motorist is paying an average of £1,240.50 per annum for their car insurance. That is a rise of 3.5% when compared with Q1 of 2016. A motorist in the age bracket of 60 to 69 is paying an average of £349.46 per annum with this being an increase of 3.2% when compared to the first quarter of 2016.

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