UK auto premiums jump nearly 20%

If they continue on their current trajectory, premiums may top the all-time high experienced in 2011

UK drivers are paying 19.2 per cent more for auto insurance than they were this time last year, a Confused.com/Willis Towers Watson survey has found.

That’s the biggest annual jump recorded since 2011.

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“We’ve not seen price rises of this magnitude for five years–a 19 per cent annual increase is substantial to say the least,” Steve Fletcher, head of data services at Confused.com, said in a release. “And these price rises are being felt across the board, for drivers of all ages and genders, across all UK regions.”

If they continue on their current trajectory, premiums may top the all-time high experienced in 2011, when they peaked at 858 pounds.

“This, combined with rising fuel prices and increased motoring costs across the board, could result in a sizeable dent in drivers’ pockets,” Fletcher added.

On average, a comprehensive policy costs 715 pounds, or 44 pounds than in the first quarter of 2016. Third party, fire and theft prices jumped 103 pounds to 1,231 pounds, the highest cost for TPFT insurance since the companies began the survey in 2006.

Prices briefly flatlines in the first quarter of the year, but overall, price trends have been steadily increasing in the past two years.

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“Older drivers have seen the biggest increases in car insurance premiums, which are most likely to have been driven by inflationary pressures on claims costs, especially on vehicle damage repair costs,” Stephen Jones, UK Head of P&C Pricing at Willis Towers Watson, said.

“While there are, unfortunately, relatively more collisions involving older motorists, what is contributing to premium increases are the cost and complexity of repairs, particularly as cars are fitted with more expensive technology. An increase in the number of accidents in the second half of 2015, together with increases in repair costs in multi-vehicle accidents flowing from a legal ruling in 2014, are also likely contributory factors.”

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Male drivers aged 36 and over saw the highest quarterly price increases (7.4 per cent to 9.3 per cent), while female drivers aged 31 to 35 saw the lowest (4.1 per cent).

All age groups experienced double-digit annual jumps. Male drivers 71 and older saw the biggest increase of 23.5 per cent.

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.