Insurance rates flat for first quarter

Figures released today show that British motor insurance rates were flat in the first quarter of 2016, with the average cost of a comprehensive motor insurance remaining at £671.

However, that is unlikely to remain the case with premiums expected to increase throughout 2016. Premiums did fall in January, but recent increases have cancelled that out, according to research undertaken by price comparison website Confused.com and insurance broker and consultancy Willis Towers Watson.

Steve Fletcher, head of data services at Confused.com, said, ‘Insurers regularly cut prices in January, which has a knock-on effect for the remainder of the quarter. Insurance prices have been rising at a steady pace for the last 24 months, and the last few months are unlikely to be indicators of a period of stagnation.’

 

Last year the average cost of a comprehensive policy rose 13.2 per cent, with a November hike in Insurance Premium Tax (IPT) from six per cent to 9.5% passed on to consumers. IPT has since been raised again, to 10%.