Tag Archives: Increase

Payouts For Motor Insurance Claims Rise

ABI The Association of British Insurers (ABI) has produced some interesting statistics in November relating to motor insurance claims. The data reveals that there has been an increase in the amount paid out so far in 2018 when comparing the same period in 2017. In fact, a record amount has been paid out so far this year.

So far this year, motor insurance providers have paid out an average of £23 million every day. This is a sizeable sum of money.

This means that, so far in 2018, £6.4 billion has been paid out to motorists who have submitted motor insurance claims to their insurers. It is interesting to read that this figure is 4% more than the amount paid out to meet motor insurance claims in the same period in 2017.

There have been 41,000 claims settled so far this year by motor insurer providers with this being a rise of 11% when compared with the same period in 2017. Some £3 billion was spent on motor repair bills with this being an extra 5% when comparing the figures for the same period in 2017. The average payout per claim is £2,137. This may seem a high figure but one of the factors impacting on increased payouts is because many cars built now come with things like reversing sensors and the cost of replacing them is quite significant.

It is concerning to read that the amount paid out in claims as a result of vehicle thefts so far this year is £271 million. That figure is high and a staggering 32% more than for the same period in 2017. It is no doubt a traumatic experience to get back to where you last parked your car perhaps to do some shopping only to discover that it has been stolen. Thank goodness for motor insurance.

Let us hope that the above data does not result in a greater number of people seeing their car insurance premiums increase at renewal. If you receive notification that your premium is going to go up then make sure that you are ready to obtain one or more quotes from other providers to compare with the cost of your existing cover. Here at AIB Insurance, we have an extensive panel of insurers who we can obtain one or more competitive motor insurance quotes from for you without any obligation to proceed. So, why not give us a call on 02380 268 351 to discuss your requirements with a member of our team.

Our Open Letter to the Treasury, don’t increase IPT!

With rumors of the government increasing Insurance Premium Tax again, we sent an open letter to our MP, Mims Davies. Continually increasing the tax on socially positive motor & home insurance acts as a disincentive to buy, hits the poorest hardest & shouldn’t be a cash cow for the Treasury:

Mims Davies
The House of Commons
London
SW1A 0AA

October 2018

Dear Mims Davies MP

Airsports Insurance Bureau is a firm that provides insurance in your constituency. Our firm helps to arrange insurance for business and consumers throughout the area and in our capacity as agent of the customer; we act in the best interests of insurance buyers, finding them the best policy for their needs.

We are greatly concerned by the sudden and sharp increases in Insurance Premium Tax that have happened since November 2015 – doubling the rate from 6% to 12%. Further, the Chancellor has indicated that further increases are not only possible – but are likely.

Insurance Premium Tax was introduced in 1993. Before this, the purchase of insurance attracted no tax. Insurance allows people to take responsibility for themselves and their assets, and actually reduces the burden on the state should things go wrong.

Our trade body, The British Insurance Brokers’ Association, has made a comprehensive representation to HM Treasury, calling for a freeze in the rate of Insurance Premium Tax: https://bit.ly/2xWD7p3

As a regressive tax, Insurance Premium Tax penalises those who pay more for their insurance. This includes groups such as young drivers and communities in flood risk areas. For example, the tax contribution for a £1,500 young driver’s policy has increased from £90 to £180 in the last 24 months alone. With young drivers more likely to drive without insurance, any further increases are likely to have an impact on the number of uninsured drivers on the UK’s roads.

HMRC’s policy objective IPT01300 states “that IPT should make the required contribution to UK Government revenue while minimising the effect on the take up of insurance”. It is clear such significant increases are indeed likely to be to the detriment of uptake.

In your capacity as our local MP, I would be very grateful if you could take up this issue with the Financial Secretary to the Treasury, Mel Stride ahead of the Budget this month, calling for a freeze in any further increases for the term of this Parliament.

Yours sincerely,

Airsports Insurance Bureau

Car Insurance Premiums Reduce In Q2 2018

Fiesta Motorists will be pleased to read that premiums for fully comprehensive car insurance have, on average, fallen in the second quarter of 2018 when compared to the same period last year.

According to the Confused.com Car Insurance Price Index that is produced on a quarterly basis the average amount paid for the above level of cover in Q2 of 2018 was £752 per annum. Twelve months ago, the premium was £847 per annum so there has been a drop of £95 with this equating to a fall of 11.2%. That is a significant reduction.

It is interesting to read in the above report that those motorists who merely renewed their car insurance with the same insurance company ended up paying, on average, an extra £49 per annum for their cover when looking at data covering the second quarter of this year. This just goes to show how important it is that motorists should shop around when he or she receives their renewal quotation from their existing insurer to try to get a better price elsewhere for the same level of cover.

As you are probably aware, it tends to be the young, inexperienced driver who pays more for their car insurance than others and that is not surprising. However, it is interesting that the above report reveals 17 year olds have, on average benefitted from quite a drop in the cost of insuring their cars when comparing Q2 of 2018 with Q2 of 2017. They have seen premiums fall by an average of £403 per annum to an average of £1,889 per annum. This is even lower than that being paid by 18 and 19 year olds with the former paying an average of £2,052 per annum and the later an average of £1,893 per annum. A reason for the drop could be due to an increase seen in the number of insurance companies offering telematics (black box) car insurance.

Those premiums are significantly higher than the average paid by older motorists for comprehensive cover: –

34 year old – £664 per annum

51 year old – £647 per annum

68 year old – £496 per annum

On a regional basis, Northern Ireland has seen the biggest fall in premiums with premiums dropping on average from £1,059 per annum to £894 per annum between both quarters. That is a fall of £165 per annum equating to 16%.

On a more local basis, motorists living in Inner London saw their premiums reduce by an average of £179 per annum. That may be good news for many but they are still paying more than an average of £1,000 per annum for their cover with this being the only place in the UK that this is happening.

We are sure motorists would agree that it would be lovely to see the cost of insuring their cars continue to fall.

If your cover is coming up for renewal then why not contact us here at AIB Insurance on 02380 268 351 and we will be pleased to discuss your requirements and obtain a free, competitive quotation from our extensive panel of insurers without any obligation.

Motorhome Sales Increase

If you are the proud owner of a motorhome you may be interested to read that you are one of a growing number of holidaymakers who take to the road in such a vehicle to enjoy a break both here in the UK and overseas. According to statistics produced by the NCC that is the trade body for the motorhome, tourer, park home and caravan holiday home industries the number of people buying motorhomes rose in 2017 – in fact there has been a steady increase for a number of years.

Below are the statistics for new motorhomes registered here in the UK: –

2017                14,062

2016                12,332

2015                10,572

2014                  8,733

2013                  7,425

Below are the statistics for pre-owned motorhomes registered here in the UK: –

2017                55,449

2016                55,020

2015                48,839

2014                47,755

2013                45,572

The above organization also produced some interesting statistics for the number of new motorhomes registered in certain European countries that showed there has been an increase in certain countries when comparing 2017 with 2016: –

France             8.3% increase

UK                14.0% increase

Germany       15.5% increase

Italy               19.1% increase

It is estimated that there are in the region of 225,000 motorhomes being used here in the UK. Interestingly, there are about 555,000 touring caravans and 365,000 caravan holiday homes being utilized here in the UK. In 2016, it was estimated that people in Great Britain spent in the region of £2 billion per annum on caravan holidays and it is believed that about £6 billion is contributed to the economy here in the UK by the caravan industry every year.

Of course, as with most things that can be purchased, there is such a huge variance in the cost of buying a motorhome ranging from a few thousand pounds for a second hand vehicle to a six-figure sum for a brand new motorhome.

If you are considering investing in a motor home and it is not the type of holiday that you have tried before then you may prefer to hire such a vehicle for a week or two to make sure that touring around the UK and beyond is for you and your family.

Here at AIB Insurance we have many years experience in arranging motorhome insurance for numerous clients, We have a panel of reputable insurers so why not get in contact with us on 02380 268 351 and speak with a friendly, informative member of our team who will happily arrange a bespoke, competitive quotation without any obligation.