According to data from the ABI, premiums for insuring a car increased by an average of 8 percent.
In the final quarter of last year, auto insurance premiums in the United Kingdom increased by an estimated 7 percent, when compared to the rates that had been charged to customers during the previous quarter.
Throughout all 2015, it is estimated that the increase in car insurance premiums in the U.K. was 8 percent.
The increase in auto insurance increases had a great deal to do with a premiums tax that has had an impact on the amount being paid by customers across this sector. This, according to the data that was released by the Association of British Insurers (ABI). The tax increased from having been 6 percent during the previous quarter, up to 9.5 percent by the end of 2015. That caused the average private vehicle insurance premiums to $614.26 per year, said the ABI’s statement.
The tax increase was combined with an increase in personal injury claim value has spiked auto insurance premiums.
According to the ABI’s report, “The rise in the overall value of lower value personal injury claims, coupled with the government’s rise in the rate of insurance premium tax introduced last November, has led to rising average motor insurance premiums.”
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The data presented by the insurance industry group in the United Kingdom represented the results of a survey that was conducted on the industry throughout the region by Confused.com as well as the AA recovery service. Those reports both examined the premiums in the industry and both recorded notable premiums increases for car insurance customers.
Among the auto insurance companies that were taken into consideration in terms of the premiums they were charging, included FTSE companies, Admiral, esure, Direct Line and Hastings. As the largest insurers in the country, their figures provide a clear image of the movements that have been occurring within the insurance industry in terms of rates and the amounts being paid by drivers. As the tax was one of the largest drivers of the increase, it is unlikely that 2016 will not experience a similar size of rate hike for that same purpose.