UK motor premiums up by 14% but rate of incline slows
Comprehensive car insurance premiums in the UK continued to rise during the final quarter of 2016, with motorists now paying 14 percent more than they were a year earlier, according to the latest Confused.com Car Insurance Price Index in association with Willis Towers Watson.
According to the Index, which is based on price data compiled from almost two million customer quotes, these results represent a 4.1 percent quarterly increase (or £30). This compares with the 6.9 percent quarterly increase (£43) for the same period in 2015.
Comprehensive cover prices have been steadily increasing since 2014, with figures from the Price Index+ service showing monthly price increases recorded in 10 of the last 12 months of 2016.
According to Willis Towers Watson, although these latest quarterly figures suggest a continuing upward trend for 2017, they also indicate a possible slowdown in the actual rate at which premiums are rising.
Stephen Jones, UK Head of P&C Pricing at Willis Towers Watson, said: “It’s not unusual for price increases to soften around the end of the year, with an annual increase of 14 percent in the final quarter of 2016 compared to the 19 percent rise we saw six months earlier.
“However, the lower Q4 increase relative to that in 2015 may herald something of an underlying slowdown in the rate of premium increases seen following recent exceptional influences on repair costs. In 2017, however, repair cost inflation is expected to remain an influence on premiums, especially given exchange rate movements following the Brexit vote and that insurance premium tax will increase from 10 per cent to 12 per cent in June, further pushing up costs for consumers.”
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
