Vehicle repair costs and IPT are among factors affecting motor premiums
The average comprehensive motor insurance premium has risen by 9% over the last year adding an extra £38 to the average policy, according to the ABI Quarterly Motor Insurance Premium Tracker.
The tracker which surveys what consumers actually pay for their cover – shows that in the third quarter of the year the premium paid had risen by 9% from £402, adding an extra £38 to the average price paid for comprehensive cover.
The ABI said the factors that are contributing to the rising costs of motor insurance include:
A 5% increase in the average bodily injury claim settled so far this year to £10,955.
Vehicle repair costs that have risen 25% in the last three years to an average of £1,665.
The increase in the rate of Insurance Premium Tax
ABI head of motor and liability Rob Cummings said: ““Insurers are fighting the corner of hard-pressed motorists, despite facing a triple whammy of rising costs from personal injury claims, repair bills and Insurance Premium Tax.
“The Government has a key role to play in ensuring the best insurance deals for honest motorists.”
He also urged the government to consult on the planned reforms to address compensation culture.