Insurance prices continue to rise

Insurance prices continue to rise

Average motor insurance costs rose the second quarter of 2019, according to Association of British Insurers (ABI) figures. That brought to end five consecutive quarters of prices going down.

The Association of British Insurers's (ABI) monthly premium tracker found that the average price paid for motor insurance rose to £467, an increase of £1 on the previous quarter.

The ABI said this was down to increased repair costs, pointing to the fact that the repair bill for insurers in quarter one was £1.2bn, the highest quarterly figure since the ABI started collecting this data in 2013.

It also warned that the new discount rate, set to take effect from next month, will put further pressure on insurers.

Mark Shepherd, assistant director and head of general insurance policy at the ABI, said, 'The recent decision on the discount rate is bad news for motorists that will simply add to insurers costs rather than save customers money, at a time when vehicle repair bills and theft claims are rising.

'Motor insurance remains a highly competitive market, but some motorists may in the future have to search harder to get the right policy for their needs at the best price. This makes it more important than ever that the whiplash reforms in the Civil Liability Act are implemented on time and in full.'

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Jan/Feb 2020
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