Car Insurance Prices Continue to Rise
In October 2016 the AA (Automobile Association) reported a 15% rise in car insurance premiums compared to previous October in 2015. Now this figure looks to continue into 2017. Depressing stuff?
Well, rising car insurance premiums probably will be depressing to the average motorist. Yes, the current Bank of England interest rates are quite low but consumer goods in general are on the rise due to inflation. These issues in addition to rising car insurance, coupled with the threats from government to clampdown on whiplash compensation claims, makes for a stark 2017.
However, all this talk of Brexit influencing price rises should not be used by insurance companies as an excuse not to pass on savings to the consumer. The price of car insurance is rising year on year for the past 18 months. This rising trend got spotted way before the Brexit vote. A lot has been posted online this past 9 months about the insurance industry’s whiplash campaign. It believes or argues that whiplash claims have risen by 50% over the past decade fuelled by fraudulent claims costing insurance companies almost one billion pounds a year. Read about it, it’s called the big insurance lie.
This ‘whiplash campaign’ to stop these types of claims, like Brexit will be used by the insurance industry to justify its price increase. Even on its 10 anniversary, Confused.com recently sent out emails illustrating that car insurance prices had increased by 14% over a 12 month period. It is calculated a typical driver can now be expected to pay more £760 for a standard comprehensive policy.
BBC’s Watchdog also researched this car insurance price rise and discovered that customer loyalty is normally not rewarded when it comes to renewing a car insurance policy. They discovered that some insurance companies actively do not market new products and services to existing customers.
Last November The Telegraph newspaper reported that this worrying trend for motorists is continuing without much reduction. So now that we’re well into 2017 this story has little chance of reducing either.