No respite for policyholders
The average cost of comprehensive car insurance continued to rise during the third quarter of the year, with the high cost of repairs and Insurance Premium Tax both contributing factors.
That’s according to the latest Confused.com Car Insurance Price Index in association with Willis Towers Watson. It also found that the increase had slowed from 6.5% in the second quarter of the year, but overall that the average car premium in the UK has risen by 17.3% in the past year to £737.
Stephen Jones, UK head of P&C pricing at Willis Towers Watson, said, ‘The primary forces behind recent increases are repair costs driven by legal rulings about recoverable expenses together with increasing vehicle complexity.’
Meanwhile, many drivers over 40 have seen price increases exceeding 20% in the last year, although they are still doing better than drivers of 25, who pay upwards of £1,000, while the average cost of insurance for an 18 year old is £2,106.
Regionally, an 8.6% quarterly rise in the Scottish Borders has resulted in a national high annual premium increase of over 23%, although the average premium for that region remains the lowest in the country at £520.