The average annual comprehensive motor insurance premium has risen by 17 per cent to £633 over the past two years, according to the AA. So, why are premiums on the up?
A strengthening economy has led to more drivers on UK roads. More driving means more accidents, resulting in rising claims costs and premiums.
Our gadget-filled cars also aren’t helping. A minor bump used to mean replacing a plastic bumper, yet with parking sensors on the rise it now means the process is far more costly. Bumpers with sensors are two to three times more expensive than those without.
Insurance premium tax is also to blame. In October 2015 it was just 6 per cent but has steadily increased to 10 per cent, and is due to go up to 12 per cent in June this year.
“It all points towards a need by businesses to manage their accidents and costs more carefully than ever,” said Interactive Fleet Management’s Shaun Redhead, “and over the last year we have seen a rise in demand for our accident and claims management service, which saves time and money and provides essential data for the company’s insurance renewal.”
© 2015 Interactive Fleet Management Ltd. Balmoral House, Kettering Venture Park, Kettering NN15 6XU Tel: 01536 536590 Fax: 01536 536591