Car insurance, up £100 in a year

21 January 2016

cosy-coupe- car Figures show that the average cost of car insurance has gone up by over £100 in the past year, and false or exaggerated whiplash claims have added £50 to everybody's policies.

This comes from AA Insurance, so say that the average price of insuring a driver for a year has risen by 20%, from £520 at the end of 2014, to £625 at the end of 2015. As if driving wasn't expensive enough.

The biggest spike in price came in the last three months, with the average quote now standing at £59, which is 10% more expensive than it was this time last Autumn.

There's another reason it has gone up - you can say thank you to George Osborne's "insurance premium tax", which was introduced in the Emergency budget last summer. The tax went from 6% to 9.5%, and is paid every time an insurance policy is bought in the UK. It adds £13 to the annual cost of running your car.

Michael Lloyd, who is the director of AA Insurance, said personal injury claims are still a huge problem for the car insurance industry. He said: "It's this acceptance that it's OK to defraud insurers that has become endemic. It is stealing and it affects the premiums paid by your friends, your family and your colleagues - those that most wouldn't dream of defrauding."

And analysts say that car insurance is going to keep getting more expensive in 2016, but hopefully, at a slower rate. Still, ain't that a kick in the head?

TOPICS:   Motoring   Insurance

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