Premiums Car Insurance Quote on the Rise - Arkwright Insurance

Premiums Car Insurance Quote on the Rise

British motorists paid nearly £47 more in the third quarter of 2015 for their comprehensive car insurance premiums than they did this time last year, according to a car insurance price index. The 8 per cent rise is the largest motorists have experienced since 2010 bringing the average annual premium for a comprehensive motor policy close to £629. Though this inflation has been gradual over the past year, it is still jarring after three years of declining costs.

We would quote car insurance premium based on your personal circumstance and also, you’re driving record history.  We would go through the details and then produce a quote car insurance premium from one our insurers on our panel.

However, the cost inflation is not a calculated scheme devised by the insurance industry, as some may believe. Instead, it stems from increased claims costs. And, with the Insurance Premium Tax rising from 6 per cent to 9.5 per cent in 2016, experts do not expect costs to dip soon.

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Nearly 840,000 motor injury claims were made last year and cost the insurance industry an estimated £12 billion. In order to sustain the funds to continue effectively paying out claims, the industry was forced to increase the cost of motor policies. Because rates for comprehensive car insurance premiums are predicted to continue steadily rising, you should follow these four tips to keep your premium as low as possible:

  • Take a higher voluntary excess.
  • Install an approved alarm, immobilizer or tracking device.
  • Sign up for a telematics policy with your insurer.
  • Consider the average distance that you drive annually, and, if possible, agree to a lower annual mileage cap.

While you cannot completely avoid the rising cost of your car insurance premium, you can better manage it with the above guidance.

Motor Cover Premiums Climb 20 Per Cent

Motorists can expect to pay an average of £115 more for a comprehensive motor insurance policy than they did just 12 months ago, according to the most recent car insurance price index a staggering 19.2 per cent increase. Furthermore, motorists are paying approximately 6 per cent more now than they did in the first quarter of 2016. The rise has been attributed to the higher cost of repairing vehicles fitted with complex, expensive technology.

These yearly and quarterly price increases bring the average quoted premium for an annual comprehensive motor insurance policy to £715. This is sure to affect the wallets of many drivers when combined with escalating petrol prices and last year’s insurance premium tax hike.

Although the recent increases are significant, they are still lower than they were in 2011 when they hit a price index peak of £858. Still, prices have been on the rise since the start of 2015, and the latest results indicate that this trend is unlikely to reverse anytime soon.

Texting Raises Motor Premiums

More than 170,000 motorists in England and Wales are caught each year using their mobiles while driving, despite it being illegal. Even worse, 1 million road traffic incidents are caused by mobile use each year. In response, insurers have started implementing a 20 per cent increase to the motor insurance premiums of drivers who have been fined for using their mobiles.

Though using a mobile phone while driving carries the same legal penalty as speeding, the increase to a driver’s premium is doubled. The reason for such a drastic increase is that using your mobile behind the wheel divides your attention and limits your control of the vehicle. This digital distraction places not only the motorist at risk but others on the road as well. Keep these three habits in mind in order to stay safe while driving:

  • Even if you have a hands-free mobile phone accessory, let all calls go to voicemail, or pull over to take calls.
  • If you must take a call, keep it brief and simple, and tell the person that you will call back at a more appropriate time.
  • Avoid using your mobile to take notes, send messages or look up information.

In the meantime, trust that Arkwright Insurance Brokers will do everything we can to keep your cover as affordable and effective as possible.  Contact us on 01204 392 525 or email us


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