The average cost of car insurance bills have increased by more than 13% in the past year due to a rapid incline in claims, according to new data.
Motorists are paying the price for the changing advancements in technology. Services such as repairs to cameras, sensors and other hi-tech features can sometimes cost thousands of pounds. Unfortunately, for drivers the hike in the tax on insurance is likely to increase the cost of a policy again.
According to Consumer Intelligence, the current average UK motor premium stood at £788 which is a price rise of 13.5% in the year to August.
Drivers in the North West of England and London are paying the most for their car insurance and in some cases it can be nearly as much as 50% above the National average. The cheapest place to insure a car was in Scotland.
Consumer Intelligence also mentioned that there was a “huge difference” for different areas of the country and different age groups.
It comes as no surprise that you’re drivers are paying the most for their car insurance (see Todd & Cue’s article on how to lower this cost) but even older drivers are experiencing increased rates.
On 1 October, the standard rate of insurance premium tax will rise from 9.5% to 10% to boost flood defences and inject cash into the most hard-hit regions. The government said that if insurers passed the cost of this increase on to their customers, the average motor insurance premium would rise by £2 per year.
Ian Hughes, chief executive of Consumer Intelligence, said: “The latest increase in insurance premium tax which takes effect next month, as well as rising claims, are driving the rise in premiums.”
To see if Todd & Cue can help insure your company with Motor Fleet Insurance click here or call an employee on 0191 482 0050.