On Thursday the 1st of June, the average price of car insurance will reach a record high due to a higher rate of tax on premiums. The outcome will mean the average policy will be around £800 a year. The statistics from comparethemarket.com show a rise of 14% the previous year and £200 higher than 2015.
With the Tax Rates doubling since 2015 with motorists only paying 6% compared to the 12% they’ll be paying after June this year, and the attempts to battle the overwhelming whiplash epidemic, has left the insurance industry astounded.
Comparethemarket.com’s Simon McCulloch said –
“This is somewhat of a watershed moment for car insurance. The cost of an average policy has risen by around a third in two years.
“One of the most prominent causes of these rises is the doubling of insurance premium tax over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also added substantial amounts to the average person’s policy.”
Until the market start seeing the revenue saved from the decrease in claims made by fraudulent or low level whiplash injuries, the cost of driving is only going to rise. The only way to avoid a huge increase in premiums is to shop around and check pricing for both comprehensive and third-party fire and theft as unusually comprehensive is coming up as the less expensive option.
Another way to reduce your insurance premium is to invest in a dash cam. Axa and Swiftcover – leading insurers – are offering discounts of 10 to 12.5% to motorists who invest and install one of a wide selection of dash cams and telematics devices.
The 15% of British drivers who already have these devices installed, have seen a drop in the price of their cover and the ability to keep their no claim bonuses.The footage taken from these devices in an unfair or fraudulent claim, could be evidence to prove the driver is not at fault. An excellent way to stop criminals operating in cash for crash scams.