Despite increasing cost pressures, the average price paid for motor insurance in the third quarter of the year remained flat, as drivers continued to benefit from a competitive motor insurance market, according to the ABI’s latest Motor Insurance Premium Tracker out this week. The Tracker is the only survey that looks at the price consumers pay for their cover, rather than the price they are quoted.
The figures show that the average price paid for motor insurance in the third quarter of the year, at £468, fell marginally by £1 on the second quarter and the average premium paid fell by £3 on the same quarter last year.
However, cost pressures remain following the Government’s changes to the Personal Injury Discount Rate, (a formula used to help calculate high value personal injury compensation awards) in July, will further add to insurers’ costs, and put more pressure on premiums, especially for higher risks, such as young drivers. Add to this that repair costs are rising, reflecting ever more sophisticated vehicle design and technology which in most cases are more expensive to repair when damaged. In the first half of the year, the repair bill for insurers, at £2.3 billion, rose by 11% on the same period last year, with the low value of the pound also impacting on the cost of spare parts bought overseas.
In the half of the year, the cost of theft was up by 18% on the same period last year to £211 million. This reflects Home Office figures recording a rise in vehicle thefts over the last five years. The increase is believed to being driven, in part, by keyless car crime.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
Mainly Money Matters is a trading style of 163 Consulting Limited, who are an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. 163 Consulting Limited is a company registered in England and Wales with company number 09011721. The registered office address is 60 Willclare Road, Birmingham, B26 2NT.