Row of parked carsRow of parked cars


Rising insurance costs put pressure on ‘cash-strapped’ drivers

Time 4 years ago

THE average cost of motor insurance has jumped by £30 over the past year to reach a new record high of £493, according to insurers.

The Association of British Insurers (ABI), which released the figures, said the average amount paid in the fourth quarter of 2017 for a private comprehensive insurance policy was the highest quarterly figure since it started collecting the data in 2012. It marked a six per cent increase on the same quarter in 2016.

The average premium paid over the whole of 2017 was £481, it said.

This was nine per cent or £40 higher than the average across the previous year.

The ABI said the average cost of motor cover has leapt by 29 per cent since 2014.

The trade body said insurance premium tax (IPT), which has been hiked several times in recent years, should now be frozen to help ease rising motor insurance costs.

Rob Cummings, the ABI’s assistant director, head of motor and liability, said: ‘The rising cost of motor insurance shows no sign of abating.

‘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.’

MORE: Gumtree and eBay join forces to expand offering to motor industry

MORE: New £3m Nissan dealership opens in Stafford

MORE: Car manufacturers putting safety first, analysis shows

On Workshop Magazine: Lib Dem leader gets insight into auto industry during dealership visit

Dave Brown's avatar

Dave, production editor on Car Dealer Magazine, is a journalist with more than 30 years' experience in the worlds of newspapers, magazines and public relations.

More stories...

Server 51