On average, car insurance premiums have increased by around 11% over the past 12 months.

Part of this (2.28%) is due to the increase in Insurance Premium Tax from 9.5% through 10% to 12% now.

A considerable amount is due to the change in the Ogden Rate which drastically changed the way that personal injury claims are awarded by the courts. Although life-changing injuries are thankfully rare, awards for people with serious injuries who are likely to live for many years are calculated in the millions. In one case, someone who would have been awarded £2.3million will now receive in excess of £6million.

Another part is still the issue of fraudulent and exaggerated claims for whiplash. The current legal system makes it cheaper for an insurer to pay a dodgy claim than to contest it and that is frankly ridiculous. The Queen’s Speech announced that plans were in hand to deal with that but for now it is what it is.

We do our very best to keep increases to a minimum and most of our clients are seeing premiums very close to 2016 figures although some increases have been unavoidable. Every policy is checked before we send out renewals.