Insurance costs rising?

Insurance costs rising?

18th Jul 2017

Vehicle insurance costs rising at 11% a year. Can this be right?

Seems a very large increase, has the banning of referral fees produced the desired benefits? Previously law firms could pay a claims management company or insurer to have a case referred to them. It was rightly banned in April 2013.

Have we seen the costs of insurance drop over time or has something else taken its place?

The Association of British insurers has pointed to the 2% increase in Insurance premium tax on 1st June as one cause. Increasing from 10% to 12% this could account for some of the increase.

A recently announced cut to the discount rate for compensation payments has not helped. Previously any awards were discounted at 2.5% per year, this has now been reduced to .75% to account for the lower interest savings rates people can expect if the award was invested.

Which magazine has also pointed to the rising costs of repairs to ever increasingly sophisticated technology. Cameras, sensors, and other hi tech features all offer expensive repairs so managing these costs is increasing in importance.

Other trends noted include higher premiums for older drivers. The magazine advises all private motorists to shop around as this could save up to £500 per year.

For many fleets insurance can be a major cost and decision point. Do you self-insure, with just third-party cover, or fully comprehensively insure. Is it time to review?

At what point should you do third part only or fully comprehensive.

If you elect for third party how can your mange repair costs effectively.

Are you shopping around for the best quotes as required?

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Insurance Management