Car insurance premiums rising faster than ever
UK motorists are feeling the pinch of the fastest ever rise in year-on-year insurance premiums.
The average car insurance premium in the UK has jumped by 11 per cent over the past 12 months, according to the Association of British Insurers (ABI).
It’s the fastest ever rise in premiums since records began five years ago and comes off the back of a record high for insurance premiums in 2016, resulting
in an average annual car insurance policy price of £484.
Why are car insurance prices on the up?
The news means UK motorists are set to pay more than ever before for their car insurance, with a government decision to slash discount rates – sometimes known as the Ogden rate – one of the major reasons for the record rise.
That change in discount rate, introduced to help accident victims claim more money, is expected to increase the cost of claims for insurers forcing average premiums up by £75, according to ABI.
Along with an increase in insurance premium tax (IPT), the new discount rate means the average cost of a car insurance policy is now higher than ever and as a result, the ABI is calling on the government to review the Ogden rate to lessen the impact on motorists.
Is everyone against the Ogden rate?
Not everyone is against the revised discount rate, with personal injury lawyers accusing insurers of under-paying accident victims before it was introduced on 20 March 2017.
What happens next?
The new discount rate has already been subject to review by The Ministry of Justice and it is set to be debated in the House of Lords today, however for now it remains ion place.
Can I still save on car insurance?
Despite the record increase in year-on-year insurance premiums, there are still ways for UK motorists to save money on their car insurance.
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