Premiums set record high

Motor insurance premiums have reached a new record high, rising on averge £45 this year.

This is according to figures from the Association of British Insurers’ (ABI) latest Motor Premium Tracker published, which is the only published indicator of the actual premiums paid by customers rather than prices quoted.

The ABI Tracker shows that in the third quarter of the year: the average price paid for private comprehensive motor insurance at £485 rose 10% on the same quarter last year, equating to an extra £45.The average premium now stands at its highest since the ABI started tracking average motor premiums paid back in 2012.

Average premiums rose by £6 on the previous quarter figure of £479,.an increase of one per cent.

Rob Cummings, head of motor and liability at the ABI, said, ‘The UK government’s proposals to deliver a personal injury compensation system that is fair for claimants, customers and taxpayers alike should help ease the pressure on motor insurance premiums. We urge the government to publish a framework and timetable for making these reforms a reality so that we have in place a system that provides full compensation to claimants and benefits insurance customers, as well as other compensators like the NHS.

‘And in the forthcoming Budget, the Chancellor must resist any temptation to further increase the rate of Insurance Premium Tax.’