The average price of private comprehensive motor insurance in the first quarter of 2016 has risen by 10% compared to the same period last year, according to the Association of British Insurers’ latest Quarterly Average Private Comprehensive Motor Insurance Premium Tracker published on Monday.
The average premium for the first quarter of 2016 was £429, £41 more expensive than it was this time last year. This is the largest quarter on quarter rise since the ABI began collecting data in 2012.
The average premium is also £2 higher compared to Q415. This is likely due to higher Government-imposed taxes, ABI said.
James Dalton, ABI’s director of general insurance policy, said: "The last 12 months has been a bumpy ride for motorists. After a period of falling premiums as insurers delivered on their promise to pass on cost savings arising from the previous Government’s civil justice reforms, motorists are paying the price for the Chancellor’s decision to increase
Insurance Premium Tax last year as well as the persistent rise in the number of whiplash claims the industry faces.”
Dalton also added that another IPT increase is scheduled in October, which may cause premiums to go up even more. For premiums to go down, he said, the Government should push through with other planned reforms such as removing the right to claim damages for whiplash.
