Motor premiums skyrocket: ABI

Motor insurance premiums hit record highs between 2015 and 2016, according to the Association of British Insurers (ABI). Data from the organisation found all age groups except those aged under 21 saw costs rise.

The average price paid for comprehensive motor insurance across all ages hit a record GBP462, a rise of eight percent on the year before, according to the ABI Motor Premium Tracker, in a BBC report. Drivers in their late 50s faced the highest rises, at nearly 13 percent. Those aged under 21 have the highest average premium at around USD923 annually.

However technology used to track driving habits of young drivers meant those aged between 18 and 21 were the only age group to see motor insurance premiums fall, down 2.3 percent between 2015 and 2016.

ABI stated that premiums could rise further between now and the start of 2018 as insurers pass on costs such as the insurance premium tax and changes to the discount rate, which increased the claims for insurers.

The study also highlighted that workers in the insurance and long-term savings industry contribute between GBP135,000 and GBP150,000 annually to the economy – that makes them around twice as productive as workers in the construction and manufacturing sectors.