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The typical automotive insurance coverage premium rose by eight% up to now yr to £462, says the Affiliation of British Insurers.

The ABI mentioned the £34 rise had pushed common premiums to their highest degree since its information began in 2012.

The primary causes had been greater restore payments, will increase in insurance coverage premium tax and the persevering with concern of whiplash claims.

Nonetheless, the figures are much lower than those recently published by the value comparability web site

Earlier this month it mentioned the common premium had risen by £110 up to now yr, to the a lot greater degree of £781 for a complete coverage.

For its half, the ABI mentioned additional will increase had been inevitable as the federal government has already determined to lift insurance coverage premium tax once more on 1 June, from 10% to 12%.

“Additional rising prices might spell extra distress for tens of millions of motorists,” mentioned the ABI.

“The change to the way in which through which compensation for critical private accidents is calculated – the low cost charge – will result in large further prices for insurers.”

The insurance coverage business was shocked in February when the federal government introduced a major change to the formula that governs the worth of funds made to individuals who have suffered long-term accidents.

That reduce the so-called low cost charge, which helps to calculate the lump sums that insurers pay to victims in order that they’ll, in flip, generate a gentle earnings movement for the remainder of their lives.

On the time, the ABI warned that this authorized change would add a lot to their prices that typical automotive insurance coverage premiums would rise by as a lot as £75 per yr.

That change got here into impact a month in the past.

Rob Cummings of the ABI mentioned known as on whichever occasion wins the election to take steps to chop the price of automotive insurance coverage.

“The brand new authorities should push forward with reforms to deal with low worth whiplash-related claims and introduce pressing reforms to alter the framework for setting the Low cost Charge,” he mentioned.