AA reports rise in automobile insurance premiums
Drivers are paying almost 82 more for vehicle insurance when compared to a year ago and so are planning to see premiums rise further, based on the latest figures on the Automobile Association (AA).
The average annual expense of a new policy rose to 586 within the 3 months for the end of September, a 16.3% increase on the same period in 2015, the motoring group said.
The AA said premiums were driven up by continuing complications with whiplash claims and consumers’ growing tendency to look around for a new policy each and every year.
Its index of premiums blogs about the valuation on 5 cheapest policies for just a number of different drivers. Insurers were becoming less inclined to present low introductory rates to draw in customers, the AA said.
Other reports have suggested the fact that tariff of motor cover continues to be pushed up by advances in technology.
Additions to cars like parking sensors on bumpers have risen the price of repairs after accidents. In September, insurer LV= warned may possibly ought to increase premiums right after the tariff of accident payouts rose.
Michael Lloyd, AA’s director of insurance, said: “We are witnessing sustained price increases once again, that’s bad news for drivers. I can’t see a direct end to the current upward trend.”
The AA index demonstrated that the expense of cover rose most steeply for 60 to 69-year-old drivers, with best-buy policies up by 5.4% inside the third quarter to a average of 366. However, their premiums remained cheaper than other age ranges.
Younger drivers continued to be charged far in excess of other motorists, when using the cheapest policies averaging 1,287, an improvement of 3.6% since spring this holiday season.
Motorists in Northern Ireland had the best premiums, with those who shopped around for that quote paying usually 862. To amass, average premiums cost 422 yearly in Scotland.
Since get rid of September, insurance premium tax (IPT) proceeded to go up with the second level of 12 months.
The AA called over the government to stand up to one more increase in the autumn statement the following month and expressed disappointment in the Secretary of state for Justice’s decision to delay planned reforms intended to reduce whiplash claims.
“The whiplash epidemic has dogged the British car insurance policy industry for ten years and still does so,” Lloyd said. “I do recognise that whiplash can be quite a serious and debilitating condition. Although the activities of claim firms make life tougher for the people by using a genuine injury.”
