Car Premiums on the Rise

British motorists paid nearly £47 more in the third quarter of 2015 for their comprehensive car insurance premiums than they did this time last year according to a recent report. The 8 per cent rise is the largest motorists have experienced since 2010—bringing the average annual premium for a comprehensive motor policy close to £629. Though this inflation has been gradual over the past year, it is still jarring after three years of declining costs.

The cost inflation stems from increased claims costs. And with Insurance Premium Tax rising from 6 per cent to 9.5 per cent experts do not expect costs to dip soon.

Nearly 840,000 motor injury claims were made last year and cost the insurance industry an estimated £12 billion. In order to sustain the funds to continue effectively paying out claims, the industry was forced to increase the cost of motor policies. Because rates for comprehensive car insurance premiums are predicted to continue steadily rising, you should follow these four tips to keep your premium as low as possible:

  • Take a higher voluntary excess.
  • Install an approved alarm, immobiliser or tracking device.
  • Sign up for a telematics policy with your insurer.
  • Consider the average distance that you drive annually, and, if possible, agree to a lower annual mileage cap.
  • Consider restricting the driving - lower premiums are offered to owner only driving or owner and partner.

While you cannot completely avoid the rising cost of your car insurance premium, you can better manage it with the above guidance – and of course, Saffron Insurance is always here to help and advise. Call us anytime on 01799 514144 or your local office.

Tags: car | premiums | excess | security