Households face the prospect of two increases in car insurance costs over the next six months as more drivers get back on the road.
“I see premiums increasing over the next few months as we emerge from this lockdown period. It’s possible that consumers will increase their mileage because of this, and it’s a very significant risk factor,” said Ryan Fulthorpe of price comparison site GoCompare.
“Obviously, the more time you spend in the car, the more likely you are to have an accident. And if you’re not in the car, you’re not going to cause an accident.
Car insurance prices have fallen by an average of £74 this year compared to last year due to a drop in car insurance claims, according to comparison site Comparethemarket.com. “As more cars hit the road again, the cost of insurance could start to rise,” said Dan Hutson of Comparethemarket.
New rules for policyholders in the new year are likely to be responsible for the second price increase.
The Financial Conduct Authority will, from January, ban the practice of charging existing customers a higher premium when renewing their insurance than they would charge someone taking out a new policy – known as “ loyalty penalty.
Ending the practice is likely to drive up policy prices across the board, industry commentators say, because insurers won’t be able to charge as much when households renew their policies.
BUSINESS1 month ago
Westerham-based financial planning company buys first firm
FINANCE1 month ago
ESFA Update further education: 19 October 2022
AUTO MOBILE1 month ago
Chicago Drives Electric event in Oakbrook Terrace showcases latest EVs, with cars from Chevy, Ford, Volkswagen and more
WORLD1 month ago
Costco is selling ‘world’s largest’ jigsaw puzzle at 29 feet
HEALTH1 month ago
Vergeire not offered DOH chief post, admits reservations