Car insurance premiums are continuing to soar, and have reached a record high, according to the Association of British Insurers (ABI).
It has been found that the average annual comprehensive policy cost £462 in the last three months of 2016 – a £19 increase on the previous high, which was recorded five years ago.
Insurers claim premiums are rising because it is now costing more to repair modern cars; many of which are fitted with expensive electronics.
ABI found that the average repair bill has risen by 32% over the last three years.
Rob Cummings, the ABI’s head of motor and liability, said: “The sudden decision to review the discount rate has the potential to turn a drama into a crisis, with a significant cut throwing fuel on the fire in terms of premiums.”
“The Lord Chancellor has decided to review the discount rate to ensure personal injury claimants are fairly compensated,” said a spokesperson for the Ministry of Justice.
“Due to ongoing consultation it is not yet possible to announce the review’s outcome.”
Content Marketing Executive at Motors.co.uk