15th June 2015
Drivers are feeling the pinch as car insurance premiums jumped by no less than 8% year-on-year during May, according to MoneySuperMarket.
The price comparison site’s analysis of year-on-year pricing across 1.9m quotes revealed the average annual premium is now £443, up from £411 in May 2014.
Previously premiums had been dropping, falling by more than a quarter, at 26% between May 2011 and May 2014. However, 2015’s figures have put the breaks on this trend.
Kevin Pratt, insurance expert at MoneySuperMarket, said: “Insurance premiums have been on a welcome downward spiral, but it looks like the end of a happy ride for British motorists.
“One reason for premiums creeping up is the continued high level of compensation claims for whiplash and other injuries sustained in car accidents. The Government is keen to tackle the problem of fraudulent claims and has recently introduced a series of measures* in an attempt to curb our compensation culture; however the number – and value of – claims has not fallen as far as the industry expected, and insurers are filling this gap by hiking premiums.”
Pratt urged that many drivers are losing out when their policy is automatically renewed by their insurer. “Existing insurers often charge more than the driver would pay elsewhere, so it always pays to shop around for cover,” he added.