Bad news for Skoda turbo drivers and others – if you’re looking to insure your car at the moment, chances are you’ll be paying more than you would have done at the start of last year.
The Association of British Insurers’ (ABI’s) Quarterly Motor Insurance Premium Tracker shows that for the last quarter of 2015, there was a seven per cent hike in the average price of insurance compared with the previous quarter, with the average price paid emerging as £430.
This has been driven by the rise in insurance premium tax, as well as an increase in low value personal injury claims. In addition, it was found that the average premium paid in the year to the end of December 2015 was up by eight per cent.
Manager of general insurance with the ABI Rob Cummings said that the average premiums will only drop once the issue of personal injury claims costs is dealt with properly.
“We need to drive the cowboy claims management firms out of town, which is why the government’s current review of the sector must result in tougher regulation. This, together with implementing further reforms to tackle frivolous claims such as increasing the small claims limit, will ensure that the brake is applied to higher motor premiums,” he added.
If you’re worried about your premiums, it’s also worth remembering that any modifications you do to your car could push the amount you pay up. Modifications can affect how your policies are assessed by insurers, who look at whether the changes can increase your risk of accident, as well as your risk of theft.