Cost of private car insurance premiums soars

January 22, 2016 | 4years | Insurance News

Car insurance is one of those things that no-one really likes paying for, and unfortunately, it could be even more of an unwelcome expense in the year ahead, with research showing that the cost of car insurance premiums soared in the last few months of 2015 – and it isn't showing any signs of slowing down.

The latest Insurance Price Index from the British Insurance Brokers' Association (BIBA) and Acturis has revealed a "significant rise" in the level of premiums charged for private car insurance policies, as in the final quarter of 2015, annual premiums for car insurance rose by 8.6% compared with the same period in 2014.

And that's before we even factor in the rise in insurance premium tax (IPT) that came into effect in November, spelling even more bad news for motorists: the tax rose by 58%, which in real terms, means that the actual cost of car insurance polices rose by over 12% year-on-year.

To continue reading this article follow this link: