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UK drivers hit with 13% rise in insurance premiums

New data suggests that the average car insurance premium has jumped by over 13% in the last year. A sharp rise in the number of costly claims and a looming tax rise are being blamed according to Consumer Intelligence.

It’s no surprise that new vehicles are often fitted with the latest hi-tech items, with many cars sporting features such as cameras and sensors to help make driving easier, safer and more enjoyable. The downside to all of these modern day features is that the cost of fixing newer cars has drastically increased, due to the amount of expensive technology fitted. These increased repair costs are having a knock on effect and we’ve seen the price of insurance rise considerably over the last year.

Unfortunately for drivers there is more bad news on the horizon as an increase in insurance premium tax (IPT), announced back in May, is set to take effect. The 0.5% increase in IPT is set to cause car insurance premiums to rise even higher.

Consumer Intelligence have recently reported that the average cost of car insurance in the UK was at £788. This represents an increase of 13.5% in just one year.

Drivers living in the north-west of England and in London are being hit the hardest by these increases as they are already paying up to 50% more for their car insurance than the national average. Motorists in north-west England pay an average of £1,177 – an increase of 17.3% while Londoners are coughing up an average of £1,068 – an increase of 16.7%.

With insurance prices set to rise even higher this year, according to insurer LV, it’s possible that we will see an increase in the number of motorists taking to the roads without cover. Uninsured drivers are already a major problem in the UK, with approximately 500 cars a day being seized and impounded by the police. This only compounds the problem as insurance premiums must increase to cover the deficit caused when drivers without insurance are involved in accidents.

Remember though that no matter how high car insurance premiums rise, taking to the roads without cover is never a good idea. Not only are you putting innocent people at risk you’re also at risk of having your license endorsed, being fined and even having your car impounded by the police. Insurance for impounded cars can be very expensive and there aren’t many insurance companies that will cover you to release a seized car. By avoiding paying for insurance you could end up costing yourself thousands more in the future; once your license has been endorsed you will need to find a company that offers insurance for convicted drivers.

Whether you just want to find a cheaper renewal price or if you’re looking for insurance with driving convictions, Quote Chief can help. Head over to our Motor Insurance page today and complete our simple form to get your quotes.

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