UK insurance premiums up 4.8%

Quarterly comprehensive car insurance premiums in the UK have increased by 4.8 per cent, the biggest rise since 2010, according to Confused.com’s car price insurance index.

The rise, which has been steady for the past year, pushed the average premium for an annual comprehensive car insurance policy to £629, the data was collated by from price comparison website Confused.com and consultants Towers Watson & Co.

Third-party fire and theft policy (TPFT) average quoted premiums also rose 7 per cent in this quarter, up 10 percent annually, according to the findings.

UK Head of P&C Pricing at Towers Watson, Stephen Jones said, ‘The increase in insurance premium tax due in November will, of course, compound the effects of these trends on prices.’

Commenting on the impact of driverless cars on premiums, Jones said, ‘For all the talk of driverless cars, the effects of the creeping uptake of driver assist technology is yet to impact materially on premium levels driven by established cyclical and inflationary trends.’