Overcast

Overcast

max temp: 9°C

min temp: 7°C

Search

Cost of insurance soars £105 in year

PUBLISHED: 16:45 22 January 2016

Insurance, one of the biggest costs faced by motorists, has gone up 20% on average in a year.

Insurance, one of the biggest costs faced by motorists, has gone up 20% on average in a year.

supplied

The typical cost of car insurance cover for UK drivers has leapt by more than £100 in the space of a year, an index has found.

An average comprehensive annual policy for someone who shops around across the market cost £625.70 in the final quarter of 2015 – up by £105.64 or 20% compared with the last three months of 2014 – according to the AA’s British Insurance Premium Index.

The typical cost of comprehensive cover increased by £59 or 10% compared with the third quarter of 2015, the AA said.

The 10% quarterly jump is the biggest seen since 2010, it said.

The AA said the rising cost of motor insurance was partly due to a tax hike imposed in November. The standard rate of insurance premium tax (IPT) – paid each time an insurance policy is bought in the UK – increased from 6% to 9.5% from November 1. The change affects 7.3 million car policies.

Michael Lloyd, director of AA Insurance, said that personal injury claims – particularly those for whiplash – were also continuing to “haunt” the industry. It is estimated that false and exaggerated claims add around £50 to every policy.

Research by AA Insurance last year suggested that 11% of drivers thought it was acceptable to make an insurance claim for an injury following a collision, even if no injury was suffered.

Mr Lloyd 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.”

He expects premiums to continue to rise this year “but not at the exceptional rate recorded over the last quarter of 2015”.

He added: “And the sooner new legislation to tackle whiplash claims becomes enshrined in law, the sooner that will be reflected in the premiums quoted for car insurance.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More than £2,000 was raised at The Bell Inn’s 10th annual bike show and meet, which was described as “absolutely brilliant” by organisers.

A driver could be facing a ban and having his licence endorsed with 99 points after allegedly being caught speeding on the Orwell Bridge 11 times in just 25 days.

Suffolk and Essex runners are bracing themselves for the 37th London Marathon this morning.

On Sunday St George’s Day will be marked across Ipswich and each year it brings together friends and family to commemorate our patron saint.

North-Essex runners will be out in force at today’s London Marathon, including one long-distance fanatic who has run not just a few but actually completed several hundred marathons. See here for all the latest travel news and build-up.

Millionaire businessman Arron Banks will start his own pirate radio station off the Clacton coast to help become the Essex town’s MP if he is selected as the UKIP candidate.

Ipswich Conservative MP Ben Gummer got his campaign for re-election off the ground on Saturday with a little help from his parliamentary friends.

A record number of over 300 runners were treated to glorious sunshine when they took part in the 200th Bury St Edmunds parkrun in Suffolk.

Last week we set our Suffolk iWitness members their weekly challenge: framing. Here are our favourites!

Former Colchester MP Sir Bob Russell has confirmed he will be the Liberal Democrat candidate for the General Election in June.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24