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Car insurance premiums continue to soar

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

February 3, 2017

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