Premium prices for car insurance
Comprehensive car insurance premiums in the UK jumped up by 13.2% last year, the biggest annual rise since 2011.
Figures released by consultants Willis Towers Watson Plc and Confused.com’s car price insurance index found that the increase was driven by a 6.9 per cent rise in the fourth quarter, raising the average annual premium to £672.
Stephen Jones, head of P&C pricing at Willis Towers Watson, said, ‘The recent increase to Insurance Premium Tax along with inflationary pressures on claims costs, especially to vehicle damage repair costs, have been the major factors driving up prices.’
Meanwhile, third-party fire and theft policies also rose 6.9 per cent in the final quarter of 2015.
Steve Fletcher, head of data services at Confused.com, said, ‘We’ve now seen 11 consecutive months with no premium decreases, which would suggest that the trend is likely to continue.’