With so much being paid out in claims it may not be surprising that premium costs for consumers have also risen over time. The average comprehensive cover increased by almost 230 British pounds and third party, fire and theft policies by a further 500 hundred British pounds between 2010 and 2018.
Motor insurance premiums are affected by a number of reasons relating to the individual including age, gender and even where they live. As well as the individual there have been a number of other factors influencing the acceleration of motor insurance premiums. One major reason has been the steep rise in insurance premium tax rates which have increased from 2.5 to 12 percent between 1993 and 2017.
Another factor that may affect motor insurance costs could be uninsured drivers as well as motor insurance fraud. In 2016 London had an estimated 191 thousand uninsured vehicles, which amounted to 6.1 percent of the capital's 3.1 million vehicles. As for fraud, approximately 68 thousand fraudulent claims were detected in 2016, with a value of 780 million British pounds.