Car insurance costs are now at their third-highest since the ABI started collecting the results back in 2012 as prices were found to have increased. In the final quarter of 2019, motorists paid a total of £484 in a £15 or three percent increase in the previous quarter.
Data revealed the average price of a car insurance policy in 2019 was £471 which was the third-largest annual figure over the past eight years.
ABI’s assessment is the only survey which takes data from what consumers actually pay for their insurance rather than the quotes.
It means the survey gives an accurate reflection of the current market which crept up towards the end of the decade.
In a desperate bid to help cash-strapped motorists the ABI has red? the government to reduce the rate of insurance Premium Tax slapped on agreements.
READ MORE: Car Insurance prices could hit record highs by end of 2020
“This tax penalises drivers for simply complying with the law and having motor insurance, hitting hardest those facing higher premiums, such as younger drivers.”
According to the ABI, car insurance premiums may have increased because of a range of extra factors.
Repair bills for car damage have generally increased in price which means car insurance providers must pay more when a claim is made.
In the first half of 2019 average repairs were £2.3billion in an 11 percent increase on the same time in 2018.
Average vehicle theft also increased by 18 percent over the first half of the year.
Home Office statistics have noted a general rise in vehicle thefts over the past five years with the increase in keyless car thefts to blame.
Locations and the crime rates of certain areas are taken into account by car insurance providers to work out how much you should be paying.
Motorists from an area of low crime rate will be less likely to claim on their policy and should see cheaper premiums to reflect this.
The ABI also pointed to the government’s Ogden rate changes which put extra costs onto insurance providers in a payout.
The changes ensured road users now receive more financial support in the event of a car crash meaning car insurance proves miss pay more.