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Car Insurance prices could hit record highs by end of 2020 as average costs go…

by ace
Car Insurance prices could hit record highs by end of 2020 as average costs go...

The increase meant that auto insurance prices had their biggest increase since 2017, according to analysis by insurance comparison website Confused.com and insurance broker Willis Towers Watson. Auto insurance prices have now averaged £ 815 for comprehensive coverage.

He added: "Many of the challenges observed throughout 2019 will persist in 2020, as cost pressures persist from expensive vehicle repairs, complaints of theft, changing the discount rate last summer, uncertainty related to Brexit and increasing IPT (Insurance Premium Tax) ".

Average prices in the fourth quarter increased to over £ 800 in costs over £ 40 higher than in the previous quarter and in prices recorded twelve months ago.

Fourth quarter costs were £ 815, which represents an increase by an average of £ 783 in the third quarter and an average cost of £ 774 in the same period of 2018.

Steve Fletcher, head of data services at Confused.com, admitted that the price increases were the biggest annual increases in car insurance premiums in two years.

He added: “The past 18 months have been very volatile, with prices fluctuating before delivering a powerful blow at the end of the year. And this is a pattern that we’ve seen before, which resulted in prizes increasing by another £ 100 on average. "

“If we observe a repetition of this cycle, we can anticipate that prices will exceed GBP 900 in the next 18 months and reach the highest ever recorded.

"With the current economic uncertainty surrounding the UK, we should not expect a reduction in insurance premiums in 2020".

The £ 815 average is just £ 43 below the highest average prices ever recorded in 2011.

Further analysis by Confused.com revealed that prices in Northern Ireland also reached a two-year high as costs increased to almost £ 1,000 on average.

Price increases saw average costs rise to £ 976 on average as drivers were forced to pay an additional £ 45 in 2018 costs.

Drivers who have seen their prices rise are urged to reassess their policies and seek to change their supplier.

Changing your insurance provider can reduce costs as companies disclose their best policies to tempt new customers to join.

Louise O & # 39; Shea, Confused's CEO, said: "It's January, the month to save money and reevaluate our spending. But the bad news is that car insurance costs are rising.

"And, as drivers, this is something we cannot avoid. If costs continue to accelerate at this rate, we will be paying record prices by the end of the year.

“Shopping is essential to save on car insurance. And even if your renewal price is lower or the same, it is likely that there is another insurance company out there willing to offer a better price ".

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1 comment

Nancy Fortier January 23, 2020 - 1:55 am

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