Car owners, look away now – one industry insider has warned that the average motor premium could rise to over £1,000 next year.
The worrying prediction was made Confused.com, which estimates that premiums will creep up from the current £767 average due to hikes in insurance premium tax in June and changes to the personal injury discount rate.
Looking into its car policy crystal ball, the price comparison site has identified seven major changes in society and the industry – such as the introduction of driverless cars – that will have a significant impact on how motor insurance is calculated and how much we’ll have to pay in the future.
A grand average: Confused.com has predicted that the average car insurance premium will be more than £1,000 in 2018, based on analysis it has done on price increases in the last 10 years
A grand average: Confused.com has predicted that the average car insurance premium will be more than £1,000 in 2018, based on analysis it has done on price increases in the last 10 years
Confused.com made its forecast after reviewing average premium prices gathered on its site over the last 10 years with around 16 million quotes currently being ran annually.
And according to the comparison site’s latest end of 2016 price index, car insurance prices had risen by 52 per cent in the last 10 years.
It concluded that a same rate of increase paired with changes in the industry will see average premiums cross the £1,000 threshold in 2018.
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