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Taxes, whiplash claims push up car insurance premiums

Taxes, whiplash claims push up car insurance premiums

Taxes, whiplash claims push up car insurance premiums The average cost of car insurance rose by 14% in a year, propelled by an increase in taxes and high levels of payouts for whiplash claims.
 
This was the new figure from price comparison website MoneySuperMarket, which analysed more than three million customer quotes between April and June to identify overall and regional price fluctuations.
 
According to the website’s findings, the average premium paid in the second quarter of 2016 was £512, up from £448 in the same period last year.
 
Motorists aged from 30 to 39 were hit hardest, with the average policy rising by 22% year-on-year, from £436 to £530.
 
“Since the increase in insurance premium tax (IPT), premiums have risen sharply and this has been especially evident since the beginning of 2016,” said Dan Plant, consumer affairs expert at MoneySuperMarket.
 
“Insurers are also charging more because of high levels of pay-outs for whiplash claims, many of which are thought to be fraudulent,” he added.
 
Plant said premiums may increase again later this year since IPT will also climb to 10% in October.
 
By area, drivers in Harrow saw premiums rise by 22% to £774. Prices also jumped by 21% in Ilford, St. Albans, Wolverhampton and Kingston upon Thames.
 
“Regional price increases could be the result of a surge in accidents or car crime, and each area will have its own story,” Plant said.
 
 
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