Car insurance premiums rising isn’t always as bad a thing for insurance brokers as it is for customers – but trying to sell policies as they shatter through the £1,000 barrier might be.
Unfortunately it appears that is exactly where premiums are headed after the latest premium index was released.
Earlier today, Confused.com and Willis Towers Watson released data showing that the average UK car insurance premium had climbed by 1.8% to stand at £781 during the first quarter of 2017. This, according to Confused.com’s head of data services Steve Fletcher has put premiums on track to “drive past the £858 peak in 2011.”
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However, this may be the relative calm before the storm. Speculation is mounting that after the slashing of the Ogden discount rate which is used to calculate the payouts on personal injury claims; coupled with the impending rise in Insurance Premium Tax, car insurance premiums could break through the average £1,000 a year mark that is normally only reserved for young, inexperienced drivers.
The emphasis will now be on the UK Government to find a resolution to the Ogden rate – it began an official six-week consultation period on how the rate will be determined in the future, back on March 30.
Ogden rate cut: A broker’s perspective
D-Day arrives for insurance premiums