The Association of British Insurers (ABI) has called the surge in motor insurance costs “relentless,” with average premiums paid in 2017 reaching a new high of £481 – a 9% increase versus what was recorded for the whole of 2016.
“The rising cost of motor insurance shows no sign of abating,” said Rob Cummings, ABI assistant director, head of motor and liability. “Changes to how compensation pay-outs are calculated, Insurance Premium Tax, more whiplash-style claims, and rising repair bills are all piling on the pressure for cash-strapped drivers.”
ABI’s latest motor insurance premium tracker – which the trade body stressed is the only market survey based on actual payments instead of quotes – showed that in the fourth quarter of last year, the average price paid for private comprehensive motor insurance was £493. That equates to a 6% jump compared to the same period in 2016 and is also the highest quarterly figure since ABI started collecting the data in 2012.
In response, the association has a call to action addressed to those in power.
“The government must urgently bring forward relief for motorists by introducing its reforms to create a fairer compensation system, and tackling low value whiplash-style claims without delay, as well as freezing Insurance Premium Tax,” urged Cummings.
Meanwhile both Moneysupermarket and Confused.com have also recently reported rises in average premium costs for motor cover, based on customer quotes.