Drivers of all ages are paying record amounts in car insurance premiums. And the Association of British Insurers (ABI) has warned there is no end in sight for the high cost of cover.
The reason for these spiralling prices is a cocktail of external factors. Here we look at why the cost of cover is going up, show where premiums are spent, and point the way to how drivers can save money on their motor insurance.
Whiplash can be a legitimate complaint. But it’s so hard to prove there are calls to make claiming harder to cut down on fraud
Drivers can now work out exactly what their car insurance premium pays for – and it’s probably not what you think. The Association of British Insurers (ABI) has broken down the cost of premiums to show the different elements we pay for when our annual renewal is due. It wants to use the stats to encourage the government to speed up reforms which it hopes will cut the cost of cover for drivers.
By far the biggest part of our car insurance is in pay outs for personal injuries. These account for more than a third (37 per cent) of every driver’s premium. With the average driver paying £434 a year for cover, that’s £161 from every driver in the UK going on injury compensation.
Not every young driver can afford a new car… But whatever they choose, the smaller and safer the better (Picture © Peugeot)
Being a young driver is a tricky business. Not only do they have the astronomical cost of fuel to contend with but they also get stung on the price of car insurance. And then of course there’s the purchase price of the car to consider as well. But there are some steps youngsters can take to cut the cost of driving.