Car insurance premiums rise by £110

Car insurance premiums rise by £110

Comparison website says that drivers saw car insurance premiums rise by an average of £110 in the last 12 months.

The site say that this rise is caused by governmental law changes as well as more expensive repairs. They average cost has risen by around 16 per cent.

It was discovered that drivers paid an average of £781 for comprehensive cover in the year to March 2017.

It is also believed that premiums are set to continue rising to record levels and could pass £1,000 next year.

The biggest rises have come on newer vehicles, due to their complicated electronics which make repairs considerably more expensive.

“A prang on a bumper is now not only a piece of plastic to be replaced, but a cacophony of sensors and cameras,” a spokeswoman said.

Prices have also risen in response to a new compensation formula.

When the changes kicked in premiums rose by around 4 per cent, found.

The government altered the so-called Ogden Rate for calculating lump sum payments to accident victims who suffer long-term injuries.

“As the industry adapts to additional pressures… we could be on course to drive past the £858 peak we saw in 2011,” said Amanda Stretton, motoring editor at

“As car insurance costs continue to climb, average premiums could even break the £1,000 barrier by next year,” she added.

The figures are higher than those provided by Association of British Insurers, which found the average annual comprehensive policy cost £462 in the last three months of 2016.

However, both reported that premiums were increasing in part because of rising repair bills.

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