Car insurance Rises Due to Brexit

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According to the AA, since 2017 car insurance is rising because of Brexit uncertainty. The policy has climbed by 2.7% to £609.93 on average over the last three months. Premiums have also increased, because the cut in claims will not take effect until April 2020.

“All the concerns underlying all of this are surrounding Brexit”, said the AA’s director of insurance Janet Connor.

She also said that the market has continued to battle with the value of sterling, nevertheless whatever the final deal looked like. This would also lead to the rising of the cost for imported car parts, which further adds to the costs for car repair within the mechanical industry.

The Civil Liabilities Bill is also another key factor in the trend, which limits the cost for whiplash. This Bill was planned to take immediate affect, but since the Bill became law last month, it will not be implemented for more than another year.

“Although the Civil Liabilities Bill has now been approved, the new supplies are being delayed until April 2020. This means that the recent premium has been decreased in expectation, which allows the claims to save costs, along with the rising change of the discount rate,” explained Ms Connor.

Younger drivers have been warned by the AA that they are going to face paying premiums which are an average of £1,317.Ms Connor said: “Young and newly qualified drivers would face a significant penalty when it comes to the insurance price, but not least because they have not built up a no-claim bonus.Therefore, there is no surprise that some may take the risk of driving without an insurance.”She said that the Motor Insurers’ Bureau (MIB) would issue some 3,000 warning letters to uninsured drivers every day.

New drivers

The AA have called in for new drivers using telematics to be exempt from the insurance premium tax, so that it helps cut out the cost for the policies.

“The information which is transmission, policies track driver behaviour and premiums reflect on the driving standard of individuals,” Ms Connor said.

The quantity of cases made by drivers with black boxes in their cars, is up to a third not than those withoutthem, as per the AA.

“Not only would it cut in the Tax, but for young drivers using the information policies discourage uninsured driving, which would also improve road safety for everyone,” she said.

Tauseef Asif

 

 

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