Car Insurance Prices Set to Soar

Gillian Cooper
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Drivers are being reminded to shop around for their car insurance in a bid to make the best of rising premiums.
The motor insurance industry has been rocked by a slew of price hikes this summer, not least in response to a government change in the way compensation payouts are calculated for people suffering long-term or serious injuries.

Known as the Ogden rate, it was raised in August from -0.75% to -0.25%. Although in theory this means insurers have to pay out less than before, in practise the change isn’t nearly as high as the industry had hoped.[1]

Mohammad Khan, the general insurance leader and a partner at PricewaterhouseCoopers, said the knock-on effect could see the average car insurance premium go up by between £15 and £25, while “younger drivers may see their premiums increase by about £50 to £75”.[2]

Motorists looking to take out a new policy or renew an existing one needn’t despair, as price comparison sites can still help us save money. Plus, at UniteProtect, if you find a cheaper car insurance quote online, we guarantee to beat it. T&Cs apply.

* Price Guarantee Terms and Conditions: This offer is to beat your cheapest online car insurance quote. The guarantee only applies to annual policies and to the basic policy price only. This offer excludes telephone quotations and only applies to permanent residents in the UK. We reserve the right to request proof of, and validate, alternate quotes as well as proof of the information you provided to obtain the quotes (e.g. copy of driving licence or utility bill) before our guarantee is honoured. In the event that we still cannot match your alternate quotes, then we will send you a cash reward.

Unite the Union is an Introducer Appointed Representative of UniteProtect, a trading name of Union Income Benefit Holdings Ltd (FRN 307575). UniteProtect is an introducer for Vast Visibility Limited, who administer the UniteProtect Car Insurance website and are authorised and regulated by the Financial Conduct Authority under firm reference number 566973.

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