Are you paying more for your car insurance? That is a question we hear on a near daily basis through TV advertising. You probably find the adverts quite annoying but not as much as rising costs.
The answer to the question in most people’s cases is yes. On average, motor insurance bills are increasing by 9.4%. This is four times more than the rate of inflation. The key question is why this is happening?
The promise by your insurers was that premiums would decrease inline with the 2013 legal reforms? However, it turns out a promise doesn’t mean very much and there is worse to come.
Who do rising motor insurance premiums affect the most?
If you are living in London or the North West of England, look away now. Motorists in these regions are paying more than £900 per year (12-12.8%). The age range of 21-24 years old are felling the highest average increases, paying £1,176 per year. This compares with the over-50s who pay the least at £372 a year.
The only god send for younger drivers comes in the form of telematics. This is slowing the rates of increase at 7.8% but the point is that premiums are still rising.
How much did your premium increase by? Our map will give you some indication.
Why are we paying more for our car insurance?
It is easy to point the finger of blame at the recent changes to the discount rate. Justice Secretary, Liz Truss, is introducing a revision of compensation payouts for those who suffer long term injuries.
To most people this sounds fair. The old personal injury discount rate left people with serious injuries with less compensation than they need. Thanks to the revision this will become a thing of the past.
What this has brought on though is pledges by motor insurance companies to increase premiums. Why would they need to I hear you ask? The answer is because the money that the serious injury victims were not getting before, is the same money that was presenting insurers with health bonuses and profit margins.
How can we reduce what we pay?
Ask yourself an honest question? When did you last receive a renewal offer that was less than what you were paying the year before? The only way to continuously save on your premium is to continue to use quote comparison websites. Loyalty means nothing to insurers. If it did, comparison sites might not exist. They are putting your premium up to protect their savings. So don’t let your own sense of loyalty stop you from protecting yours.
What Scott Rees & Co can do for you?
We can’t reduce the amount you pay for your motor insurance but we can help you if you suffer an injury on the road. Providing the accident was not your fault, we can help you or those your love claim compensation.