A lot of car insurance is discounted to sucker in new business and then it goes up, year on year. So for the 2 Mercs we get a new policy with one of 4 Companies each year for each car.
Even so this year we have seen increases of 10%, but lower than average.
This
article is interesting. Lots of reasons, but nothing that properly explains WHY. Some excuses by the AA
1. Partly down to a tax hike imposed last year. The standard rate of Insurance Premium Tax – the tax paid each time an insurance policy is purchased in the UK – increased from 6% to 9.5% on 1 November 2015, as announced in the Summer Budget.
2. Michael Lloyd, director of AA Insurance, says personal injury claims – particularly those for whiplash – also continue to "haunt" the industry. It's estimated false and exaggerated claims add around £50 to the cost of every policy.
Research by AA Insurance last year suggested 11% of drivers thought it acceptable to make an insurance claim for an injury following a collision, even if none was suffered.
So, we are paying for greed, selfishness and incompetence.
As usual.
