UK car insurance premiums up for first time in a year - survey
By Frank Prenesti
Date: Monday 15 Oct 2018
(Sharecast News) - British comprehensive motor insurance premiums rose by 1% in the third quarter, the first increase for year, according to a survey published on Monday by price comparison website Confused.com.
The survey revealed that premiums had been falling ahead of expected changes in the Odgen rate, which is used to calculate compensation for personal injuries, and the government's Civil Liability Bill, expected to deal with fake whiplash injury claims.
However, it added that the UK's exit from the European Union could delay the passage of the legislation and any benefits to insurers, pushing back its implementation date from April 2019.
"The significant reductions seen over the past year would have been difficult to sustain due to ongoing pressures on repair costs, uncertainty surrounding the... bill and changes to the Ogden rate," said Stephen Jones of insurance advisory firm Willis Towers Watson.
Drivers were now paying an average of £760 for a comprehensive policy, the survey stated.
Willis Towers Watson, which compiles the index, said prices had risen for the first time since they peaked last summer at £847.
Steve Fletcher, Head of Data Insight at Confused.com, said: "Despite the decline in car insurance prices we have witnessed over the past year, it seems premiums are going up again and this time following a drop of just £100."
"The last time we saw a downward trend, premiums dropped by £279, but over a much longer period of three years. The data from this quarter suggests premiums are on the up and this time starting at a much higher base, which could mean the cost of car insurance could reach new highs."
"We expect this is due to drivers adopting vehicles with increasingly advanced technology, which makes for more expensive claims. It could also be a reflection of the uncertainty that surrounds the UK with Brexit on the horizon."
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