Are the good times over – The increasing cost of car insurance?

After three years of lower costs in running and maintaining a car, things look like they are changing and not for the better. Although oil prices are now much lower meaning lower prices at the pumps, this is not the case when it comes to the prices that drivers are now paying for car insurance.

The latest information from the car insurance price index survey is now available from analysts Willis Towers Watson. It shows that the cost of car insurance premiums is going upwards. While prices had been dropping for the last three years, they began moving upwards in 2015. The fourth quarter of 2015 saw the biggest annual increase in the cost of car premiums. The information shows that motorists now pay around £78 more on their premiums in 2015 compared with the same period in 2014.

Car insurance premiums have been going up for a number of different reasons. One reason includes the significant increase in November when the Insurance Premium Tax went up from 6% to 9.5%. The rising cost of car insurance premiums has not been helped by a large number of whiplash claims being made each year. With some claims not being genuine, the result is that other car owners have had to pay more in their premiums so that insurers can meet the cost of the insurance claims.

The amount by how much car insurance premiums are going up by will vary. Information from the car insurance price index shows that the increase in motorist’s car insurance premiums varies according to things like their age group and gender. It can also depend on where the driver lives. For men, it was those aged between 61 and 65 who saw their premiums increase by 10 percent in the last three months of 2015. For women, it was those aged over 71 who saw a large increase. Their premiums rose by a whopping 19 percent. Younger drivers appear to have avoided a large increase in car insurance premiums compared with other age groups. As for location, it is the motorists in Northern Ireland who have seen the biggest increase. Over the last 12 months, they paid around £125 more in premiums to insure their car. Similarly, motorists in Scotland and the South East have also seen a dramatic increase in the cost of their insurance premiums with an annual increase of 15 percent on average compared to the previous year.

Since it is against the law for motorists not to insure their car, the survey shows that it is more important than ever to shop around to make sure that you are getting the best price.