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Average car insurance prices rise by 15.7% to £666

Date: 23 June 2017   |   Author: Daniel Puddicombe

The average price of car insurance has increased by 15.7% in the last year, new research has revealed.

According to insurance research company Consumer Intelligence, the average premium now costs UK drivers £666 a year - with the firm blaming government policy changes for the surge.

Consumer Intelligence said the way injury compensation payouts are calculated has impacted the cost of insurance and that June's Insurance Premium Tax rise will also impact prices.

It added that average motor insurance premiums have increased by 34.6% since October 2013.

Unsurprisingly, Londoners pay the most to insure cars ? £1,000, a rise of 16.7% year-on-year - with drivers in the South West paying less than half that: £474 a year.

"Price rises had been levelling off at the end of last year but are now rising rapidly as the full impact of the discount rate cut comes into effect," said John Blevins, pricing expert at Consumer Intelligence.

"Government plans to review the Ogden rate have so far taken a backseat following the election although there is some relief from plans to push ahead with whiplash reforms announced in the Queen's Speech. However, with the impact of the latest Insurance Premium Tax rise still to come into effect. drivers need to shop around to limit increases in premiums"



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