Car insurance premiums in Britain are at an all-time high due to the fact that new cars now come with increasingly complex technologies, according to a new report.
In the last three months of 2016, the average annual comprehensive insurance policy cost £462 and the costs will only continue to rise, the Association of British Insurers (ABI) says.
Despite government attempts to cut costs, premiums continue to rise with experts claiming it’s because cars that have been in accidents are now more expensive to repair as a result of their increasingly complex electronics.
The weakening pound also means that ordering spare parts from overseas is now more expensive, while the ABI claims that the average car repair bill has risen by 32 per cent in the past three years.
Insurance costs have also been driven up by increases to the Insurance Premium Tax, which has risen from six per cent prior to 2015 to 10 per cent last year, and it’ll rise again to 12 per cent this June.
The government has said that it’s currently working on plans to cap compensation payments to accident victims, however, a move which it claims could reduce premiums by £40 a year on average.
