SHOCK FOR MOTORISTS AS INSURANCE PRICES SOAR
The latest car insurance price monitor from comparison site Tiger.co.uk shows that Britain's motorists are in for a rough ride as premiums soar by 20%.
Car insurance prices rocketed this month according to the latest price monitor from comparison site Tiger.co.uk. Motorists with insurance renewals in September could be facing premiums over 20% higher than they paid a year ago, as insurers look to harden rates and return the industry to profitability.
The price hike - with rates almost 6% higher than those seen just a month ago - has been anticipated for many months, driven by increasing claims costs and especially by personal injury claims, which have risen by 10% a year since 2013. This, coupled with fierce market competition, has created an unsustainable financial model for many insurers and this is the key driver behind the increase in prices that are now being seen.
Andrew Goulborn, Tiger.co.uk's Commercial Director, commented on the increases: "We're seeing substantial increases in prices for most UK motorists with only the very youngest of our male driver profiles being relatively unaffected. And with the Government's 58% increase in insurance premium tax - IPT goes up from 6 to 9.5% this November - we're likely to see continued inflation in car insurance prices across the rest of 2015. In the last three months we've seen rates climb by 7.3% and the last quarter of 2015 could well see an overall increase of another 5-7%. As ever, our advice to all drivers is to shop around at renewal to make sure that they are getting the very best prices without compromising on levels of cover".
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent motor insurance comparison site, offering insurance quotes from over 150 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Conduct Authority (FCA number 308374).