“Insurers threw the old rate book out the window a while ago – it’s every driver for him or herself now!”
As the ABI reports an 8% increase in car insurance premiums in the last 12 months, GoCompare comments.
Matt Oliver spokesperson for GoCompare Car Insurance, “Motorists are being hit with rising costs from all sides at the moment and those who have renewed their policy in the last few months are very likely to have seen an increase in their premiums. We’re in that part of the insurance cycle again when drivers can no longer afford to say; ‘I’m not going to bother shopping around this year’.
“Premiums are going through the roof and drivers need to take action. When the renewal letter lands, that’s the time to find out which insurers are prepared to offer you the best deal for the next 12 months. It doesn’t matter who had the best rates last year, it’s all change now. Insurers threw the old rate book out the window a while ago – it’s every driver for him or herself!
“Inflation is back on the UK economic radar anyway, but in car insurance there are specific external inflationary pressures on top. As a result, motorists are caught in a perfect storm of rising prices with changes to Insurance Premium Tax (IPT) and the Personal Injury Discount Rate now beginning to wash through into renewal prices.
“IPT alone has doubled since November 2015, up from 6% to 12%, following the latest rise last month. Any charge that is levied as a percentage of car insurance premiums is likely to hit those who already face the highest premiums the hardest.”
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