LONDON (Reuters) - UK car insurance premiums rose 7 percent in the last quarter of 2015 compared with the previous quarter and 8 percent over 2015, with a rise in insurance premium tax fuelling some of the gains, the Association of British Insurers said on Monday.
The tax rose to 9.5 percent from 6 percent during the quarter, pushing the average price paid for private car comprehensive motor insurance to 430 pounds ($614.26), the ABI said in a statement.
“The rise in the overall value of lower value personal injury claims, coupled with the government’s rise in the rate of insurance premium tax introduced last November, has led to rising average motor insurance premiums,” the ABI said.
The survey follows recent quarterly reports from Confused.com and recovery service AA, which also showed sharp rises in premiums.
UK motor insurers include FTSE companies Admiral, Direct Line, esure and Hastings.
($1 = 0.7000 pounds)
Reporting by Carolyn Cohn; editing by Simon Jessop