The rate of the average car insurance policy has risen 23% to £827 in the past two years
Motor warranty premiums are accelerating at a rapid pace, with the cost of the average conduct rising 23 per cent to £827 in the past two years alone.
Drivers in London overlook the highest average comprehensive premium of £1,283 a year, which rises to £1,599 in inner London.
Pay-as-you-go insurer Cuvva, which conducted the inquiry, warned that many drivers are already struggling to afford the tariff of motoring and the situation is set to get worse.
Founder Freddy Macnamara said a lot of drivers are straining to keep up with annual premiums: “If they keep rising this year as conjectured, we could see a spike in second-hand vehicles coming onto the market as assorted drivers are forced to give up their cars. We have already enquired new car sales plummet in the last year and this could be the next be on ones guard.”
One reason premiums are racing away is that the average cost of a motor indemnity claim has risen to the highest level on record, according to figures from the Pairing of British Insurers (ABI).
Drivers in London face the highest average steep of £1,283 a year
If motor insurance premiums keep rising this year as calculated, we could see a spike in second-hand vehicles coming onto the market
The customary claim now costs insurers £2,936, because of the increasing cost of boosting and vehicle repairs.
Personal injury claims are also driving up the set someone back, with the 320,000 claims settled in 2017 costing on average £10,816 each.
Whiplash-style petitions reported to the Compensation Recovery Unit continue to rise despite the extended fall in road traffic casualties, raising suspicions that myriad are bogus.
ABI head of motor and liability Rob Cummings said premiums bear risen by nine per cent in the last 12 months, adding an extremely £40 to the average policy.
Another culprit was the Government’s decision in February carry on year to change the Ogden rate, which is used to calculate rates in personal injury claims, which further drove up the price of concealment.
It is now set to reverse this decision and Cummings said: “Rising premiums constitute it all the more important for the Government to push ahead with its reforms to disparaging injury compensation without further delay.”
Motorists are responding to higher spurs by switching at renewal in greater numbers than ever, with 27 per cent change last year according to comparison site GoCompare.com.
Site car guaranty expert Matt Oliver said: “Nothing makes loyal consumers head for the exits quicker than an insurance renewal letter effective them their premium is going up.”
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Motorists are also more willing to switch because they pull someones leg learned from experience that loyalty does not pay.
He added: “Insurers typically use their most appropriate deals to attract new customers, so often the only option for existing characters is to go elsewhere.”
Oliver said switching is quick and easy online, and you can retrieve up to £279 on your premiums.
The longer it is since you last switched, the more you are in all probability to save.