Motor insurance premiums rose by 14% in the second quarter of this year according to research from confused.com
In the three months to June the average cost of comprehensive car insurance has increased by 14.2% bringing the average price of comprehensive cover to £599 which is an extra £74 increase.
It’s been suggested that insurers are hiking prices in an attempt to claw back profit after suffering as a result of the economic downturn, also increased claims costs, higher personal injury payouts and also more fraudulent cases.
The cost of uninsured drivers on the road is also reported to have had an impact on the rising cost of motor insurance premiums, with the Motor Insurance Bureau revealing that uninsured drivers cost insurers £400 million last year alone. This cost is then passed onto the customer which equates to an extra £30 on every motor insurance policy taken out.
The largest regional quarterly increases were reported in Manchester, Merseyside, inner London and Northern Ireland. The age group to notice the biggest leap in comprehensive car insurance rates were the 41-55-year-olds.
It’s yet another blow for motorists who’ve already been hit by the rising cost of fuel, and also insurance premium tax increases. According to one of the heads at confused.com, the cost of insurance looks likely to continue to rise as insurers struggle to make money as a result of increased fraudulent claims, uninsured drivers and hefty personal injury costs.