Insurance on the rise
The cost of car insurance in the UK rose 6.5 per cent in the second quarter compared with the previous three months and could yet reach and even surpass 2011 levels.
The increase has been blamed on higher prices for repairing more complex vehicles, according to data from consultants Towers Watson & Co comparison website Confused.com.
The cost of an average comprehensive motor premium rose to £715 in the three months to the end of June, a rise of 19 per cent, marking the biggest annual rise recorded by the index since 2011. The rise comes after rates held steady in the first three months of 2016.
Older drivers had seen the biggest increases in premiums, according to Stephen Jones, UK head of P&C pricing at Willis Towers Watson.
He said, ‘What is contributing to premium increases are the cost and complexity of repairs, particularly as cars are fitted with more expensive technology.’
Steve Fletcher, head of data services at Confused.com, said average comprehensive premiums could surpass the peak of £858 seen in 2011.
He said, ‘This, combined with rising fuel prices and increased motoring costs across the board, could result in a sizeable dent in drivers’ pockets.’