The average price paid for private comprehensive motor insurance in the second quarter of 2016 rose slightly by 1% since the previous quarter, but increased by 10% on the same period last year according to the ABI’s latest Quarterly Average Private Comprehensive Motor Insurance Premium Tracker published today. These figures illustrate the ongoing pressure on premiums driven by increases in Insurance Premium Tax (IPT) and the rising costs of personal injury claims.
The Tracker shows that:
- The average premium paid in the second quarter 2016 was £434, up £5 (1%) on the previous quarter.
- The average premium paid in the second quarter rose by 10% on the same period last year. This means that the average comprehensive motor insurance premium is £39 more expensive than a year ago.
Rob Cummings, ABI’s Manager, General Insurance, said:
“These continue to be tough times for motorists. Despite a highly competitive market enabling motorists to shop around for the best deal, cost pressures on premiums caused by the Government’s increases in Insurance Premium Tax and an increasing overall cost in lower value personal injury claims are feeding their way through into higher motor insurance premiums.
“With a further increase in Insurance Premium Tax effective from last October, it is imperative that the Government pushes ahead with proposed reforms to tackle the compensation culture by limiting compensation for low value whiplash claims, so that savings can be passed onto consumers through lower premiums”.