Motor insurance up nearly a third
Motor insurance increased to an average price of £561 in the third quarter of the year, according to data from the Association of British Insurers.
This is 29% higher than the same period last year and nine per cent up on the second quarter of the year.
Increases were attributed to a 16% rise in the cost of materials, a 15% rise in labour costs and a 46% increase in other costs.
Added to this, the rapid increase of technology in vehicles is means longer and more expensive repairs.
The ABI is now calling on the government to reduce the rate of Insurance Premium Tax (IPT) to help motorists, which makes up £60 of the average premium.
Mervyn Skeet, ABI director of general insurance policy, said: “We appreciate that another quarter of increased motor insurance premiums will be concerning for households who are already grappling with rising costs in other areas. Insurers continue to do all they can to keep motor insurance as competitively priced as possible, despite facing substantial increases in costs outside of their control. We’re bringing together representatives from across the sector to discuss issues such as vehicle safety and security. However, the government could help drivers with an immediate reduction in costs by reducing Insurance Premium Tax.”
