According to the Association of British Insurers (ABI) the average cost of insuring a car increased substantially in 2016. That is something motorists would have preferred not to have happened.
Last year, the average cost of fully comprehensive motor insurance rose by 9.3% per annum in comparison to 2015. We are sure that you will agree this is a big rise. This information is based upon the ABI Motor Premium Tracker. This index looks at the amount motorists pay for their motor insurance as opposed to quotations for such cover. The average cost of such cover was £462 per annum with this being the highest figure on record exceeding the previous record of £443 back in the second quarter of 2012.
The rise in premiums has been caused by a number of factors such as the amount being paid out for whiplash injuries, the increase in Insurance Premium Tax (IPT) and the increased cost of carrying out repairs to motor vehicles.
You may be interested to read that a bill for repairing damage to a motor vehicle in the third quarter of 2016 averaged £1,678. This means that bills for such work have gone up by almost 32% over a three-year period.
We are also due to see a further increase to IPT on the 1st June 2017 when this tax will amount to 12%. This tax will have gone up two fold between July 2015 and June 2016.
Unfortunately, motorists have also been faced with having to pay more for their fuel when filling up at petrol stations making the cost of keeping a motor vehicle on the road become even more expensive.
When your car insurance policy is due for renewal why not do some research to see if you can get the cover for a cheaper premium through another insurer. If you can then you can always ask your existing insurance company if they can “price match” – if they won’t you could consider moving to a different insurer. It really is a quick and simple process. Unfortunately, not enough policyholders bother to see if they can get the cover for a lower premium elsewhere which is such a shame. There are various providers of car insurance that can be accessed through a variety of channels including quite a number of price comparison websites that you may wish to peruse at your leisure.