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24 January 2018: Car Insurance Premiums Rise Again

According to the Association of British Insurers (ABI), car insurance premiums have yet again risen from October to December 2017 to an average of £481, which is a huge 9% rise on the same period in 2016.

This rise is the latest of eight since 2012.

There was previously a discount rate which meant insurers could be compensated for the expenses of long-term injury claims. This was, however, reduced by the government in April 2017 which means insurance firms now have to pay out more.

This is one of the reasons they use for explaining premium increases. The government are looking at potentially reversing the changes to this discount rate.

Rising fraud is also pushing up car insurance costs as many fake claims, particularly for whiplash, have been made.

The rising premiums may slow in future as new legislation is passed to control fraud, high repair bills and insurance premium tax, but for now the cost of car insurance is very unlikely to fall.

This makes it even more vital that customers find the very best deals they can on their car insurance. You can use a comparison site just like moneyhelpline.com to compare car insurance deals.

CLICK HERE to compare and save on car insurance

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