Ah, the put-upon motorist. Fees to park outside your own house, potholes littering the streets, road tax, MOTs, and the biggest liability of all: insurance.
Last year insurance premiums soared by 14 per cent. That’s an £81 increase in just 12 months, bringing the average annual comprehensive car insurance policy to £671, according to Confused.com. Analysis by the price comparison site found that every single region in the UK saw double-digit annual price increases in their car insurance costs over the past year.
And that’s just the average. Last time I renewed my car insurance, my existing insurer quoted around £1,500, more than double what I was previously paying. I drive a Ford Fiesta and live in a small town with a crime rate so low they closed the police station and are auctioning off the building. Needless to say, I decided to take my business elsewhere.
What’s driving these motor insurance premium rises? Uninsured drivers for one. Personal injury claims. Fraud. I could go on.
However, there is a sliver of good news on the insurance front – motorists have been gifted a brief respite. Confused.com’s Car Insurance Price Index in association with Willis Towers Watson shows that the first quarter of this year saw no change at all in prices. This, coupled with a lower than expected increase in Insurance Premium Tax in the recent Budget, should allow drivers to pocket a few extra pounds after what has been a tough year of ongoing price hikes.
Steve Fletcher, head of data services at Confused.com, said: ‘The fact that comprehensive car insurance premiums have remained static over the quarter was not unexpected – insurers regularly cut prices in January, which has a knock-on effect for the remainder of the quarter. But these savings should not be taken for granted. Insurance prices have been rising at a steady pace for the last 21 months, and the last few months are unlikely to be indicators of a period of stagnation.’
So, who bears the brunt of long-term price rises? None more so than drivers in Scotland apparently, with motorists in the Hebrides facing a mammoth price rise of 28 per cent annually, double that of the national average. Motorists in this region have also been dealt a second blow, with prices increasing by 32 per cent quarterly as well, bucking the national trend.
Both men and women have been hit by steep hikes in premiums over the last 12 months, experiencing increases of 15 per cent and 12 per cent respectively. As a result, the average premium for a male driver now stands at £705, and at £629 for a female driver.
And the last year has not been particularly kind to younger drivers either, with those in the 18-23 age group among those hardest hit. For these drivers, the annual rise in the premiums has been steep, with all motorists in this age bracket experiencing a yearly increase of at least £100. For 20-year-olds their annual increase stands at a staggering £189.
And it’s not just younger drivers bearing the brunt of rising prices over the last year. Motorists aged 60 have faced the highest annual increase of any age group, with their premiums rising by 19 per cent since the first quarter 2015, equating to a £68 rise.
So, although the past few months have been relatively kind to motorists, the statistics remain pretty gloomy. It might be time to switch to public transport (if you can afford the fares).
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