It’s been reported by the Association of British Insurers (ABI) that car insurance premiums hit an all-time high in the fourth quarter of 2016, rising by over five times more than inflation!.
There are several reasons – tax increases and rising repair costs are partly to blame, but also significantly is the increase in so-called ‘whiplash’ injury claims.
The average cost for private comprehensive insurance in Q4 of 2016 was £462, and the average cost for the whole of 2016 was 9.3 percent higher than in 2015.
The government is looking into how it can reform the system and in particular how it can mitigate the injury claim impact on insurance costs but until then it’s causing motorist considerable concern – increasing fuel costs also impacting to rising motoring costs.
So what can we motorists do?
Very little – other than make sure we shop around for a better deal rather than ‘auto-renewing’ when our insurance is due.
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