Car insurance premiums have increased 13% in the year to February, to an average best buy annual rate of £683, stat from Consumer Intelligence shows. It’s Motor Insurance Index – used by the Office for National Statistics (ONS) as part of official inflation data – shows price rises have accelerated in the past six months partly driven by the government’s November increase in Insurance Premium Tax to 9.5% from 6%.
There is speculation that Chancellor of the Exchequer George Osborne will raise IPT again, to 12.5% in Wednesday’s Budget.
Consumer Intelligence found that 48% of the best deals for under-25’s are from insurers offering telematics policies, compared with 33% in October 2013. “Average motor insurance premiums are heading upwards at a rapid rate with the Insurance Premium Tax a major factor,” said Consumer Intelligence chief executive Ian Hughes.
Will we see a further increase this Wednesday?
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