Unfortunately, for many motorists, the cost of insuring their cars has been on the increase for quite some time as insurers have raised their premiums for a number of reasons. This is borne out by the Confused.com car insurance price index covering the second quarter of 2016.
The above index reveals that the average cost of fully comprehensive car insurance rose an average of 19% when compared with the second quarter of last year. The average premium for this level of cover in Q2 of 2016 stood at £715 per annum. You have to go back to Q2 of 2011 before you will find a larger year-on-year % increase when premiums rose by 25%.
When you compare the cost of insuring your car with this type of cover between Q1 and Q2 of 2016, premiums have gone up by 6% in the space of 3 months with this equating to a monetary increase in premiums of an average of £44 per annum.
Looking at premiums on a regional basis, it is Northern Ireland that has seen the biggest annual increase with a rise of 25% in the 12 months to the second quarter of 2016. In that quarter, Motorists in that part of the UK were paying an average of £863 per annum. Those motorists living in Inner London pay more on average for their comprehensive car insurance than any other UK region – £1,164 per annum. Motorists in the South West saw their premiums rise by an average of 20% in the 12 months to Q2 of 2016.
However, on the positive side, motorists living in Kirkwall in the Orkney Islands and Hereford saw their premiums drop by average of 4% and 2% respectively.
Interestingly, it is the young motorist who has seen the smallest annual rise in premiums with 17 year olds paying, on average, an extra 8% when comparing Q2 of 2015 with Q2 of 2016. A 61 year old has seen premiums rise by an average of 24% over the same period. Having said that, a 17 year old would pay an average of £2,103 per annum for their cover whereas a 61 year old would only pay an average of £418 per annum.
So, if you have just received your car insurance renewal notice or are shortly to do so, you may wish to shop around to see if you can get a better deal on your cover elsewhere. In this respect, why not get in touch with us here at AIB Insurance on 02380 268 351 and speak with an experienced member of our team who will endeavor to obtain a competitive quotation for car insurance for your consideration.
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