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Car insurance premiums continue to soar

February 3, 2017 | By | In News
Insurance policy contract concept with toy model cars having a crash or accident

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.”

 

James Ash

By

Content Marketing Executive at Motors.co.uk

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