ENGINE is being warned to prepare for a premium increase this year.
Industry trade body the Association of British Underwriters (ABI) warned that there were signs that premiums were rising from a six-year low.
Households have had to brace for rising bills and rising credit costs after energy and interest rate ceilings both increased this month.
However, another bill may also be on the rise.
The insurance trade body ABI is warning motorists that auto insurance costs are rising as suppliers grapple with rising claims, parts shortages and regulatory requirements. new fee setting by the Financial Conduct Authority (FCA).
It comes as ABI’s latest motor insurance premium tracker discovered that the average price car drivers pay for auto insurance actually hits a six-year low in 2021. .
Drivers typically pay £434 to insure their car.
This is down 7% in 2020 and is the lowest level since 2015.
But car owners are being warned that the road ahead isn’t so smooth and they should accept it because of rising costs.
ABI research determined that average car insurance premiums actually rose by £11 in the last three months of the year to £440.
The figure is still 3% lower than a year ago but the trade body warned that there are signs of further increase ahead.
One factor, ABI, said, is increased claims.
From 2015 to 2020, the average amount of vehicle damage by policyholders increased by 59% and the average amount paid to third parties for damage to their vehicle increased by 32 %.
When road traffic returns to pre-congestion levels, claims will also increase, the ABI said.
ABI said the supply chain crisis is also affecting insurers, making it harder to access spare parts for vehicle repairs.
The warning comes as the FCA introduces new regulations on January 1 that ban insurers from charging existing customers more than new customers.
ABI’s Laura Hughes said the FCA pricing rule change could lead to less introductory discounts.
How to compare car insurance
PAYING your car insurance can be a stressful time.
It’s a legal requirement to have car insurance and not having it could land you a £300 fine, six penalty points on your driver’s license and even a criminal conviction.
However, before auto-renew with your current provider, make sure you compare prices to make sure you’re getting the best deal.
Once you’re done, the site will show you quotes from which you can get a number of different suppliers.
If you find a better price, go back to your insurance company and let them know what’s being offered elsewhere.
Although by no means a guaranteed way to reduce the price they are offering you, haggling doesn’t cost a dime and can prove successful.
If they can’t lower their price, then you can ditch them and go with the cheaper deal.
Also, be sure to check insurance rates directly with Aviva and Direct Line as these insurers are not available on comparison sites.
Once you’ve found your perfect deal, check out Quidco and TopCashback to see if you can earn a cashback.
“While we expect the motorcycle insurance market to remain highly competitive in 2022, the cost of parts, repairs and other supplies and services will continue to weigh on premiums,” she said. motorbikes for both new and existing customers.
“Insurers appreciate that many households are facing a cost-of-living squeeze with household bills rising as costs rise in other sectors of the economy, and they will do all it can to ensure competitively priced motorcycle insurance, in the face of the diverse cost pressures faced. “
There was a warning that Car insurance has increased by £64 since the price rule changed.
Based on Compare the marketShopping for car insurance can save you £262 annually.
Meanwhile, renew your insurance exactly 20 days before expiration days can save you £306 on average.
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https://www.thesun.co.uk/money/17548817/cost-of-living-pushes-up-car-insurance/ Households facing MORE will increase bills in 2022 as cost of living pushes car insurance up