Motor premiums rise to highest level since 2010

Premiums for comprehensive motor cover have continued to rise during the second quarter of 2017 to an average £847, according to the latest Towers Watson car price index.

According to the index this is an 8.4% rise (or £66) during Q2 2017, compared to Q1 2010 and the biggest quarterly rise recorded by the Index since 2010.

Over the last 12 months, average prices have increased by 18.5%, equivalent to £132.

These rises reflect the latest increase in insurance premium tax (IPT), which has been going up since July 2015, an increase to 12% came into force last month, as well as the recent marked reduction in the Ogden discount rate.

It also added that premiums were rising because of Brexit.

The figures showed that insurers were seeing increases in the cost of vehicle repairs, fuelled by Brexit’s impact on car part prices and by greater repair complexity as the level of expensive technology in vehicles increases.