What’s behind the price rises?
According to our research, the cost of car insurance has soared by almost £200 over the past five years. This is due to various factors, not least the multiple increases in Insurance Premium Tax (IPT). Currently standing at 12%, IPT has doubled since 2015, adding to the financial pressure that motorists are currently under.
Changes to the personal injury discount rate (known as the Ogden Rate), which came into force in March, continue to impact on premiums. By November of this year, the average price of car insurance had risen by £50.
What’s more, the cost of car insurance tends to increase towards the end of the year, meaning that December’s average premium could possibly exceed £800.