Tag Archives: SORN

What Happened To Car Insurance Premiums In 2016?

Unfortunately, the cost of car insurance has been rising for many motorists. If you own a car then you are legally obliged to make sure that it is insured unless it is declared SORN (Statutory Off Road Notification) and kept off the public road network.

Insurance Premiums IncreasingOne of the price comparison websites called Confused.com has been producing its car insurance price index for 10 years on a quarterly basis. According to that index, the average cost of fully comprehensive car insurance has increased by £95 per annum (14%) to £767 per annum in the 12 months to the end of 2016. In fact, just in the 4th quarter of 2016, such premiums rose by an average of 4% that, in monetary terms, is an extra £30 per annum. The annual increase was due to a number of factors including things like the amount paid out for whiplash claims and Insurance Premium Tax (IPT) rising.

The figure of £767 is the highest that motorists have had to pay since around the middle of 2012.

Younger drivers are, on average, paying the most for their cover with someone of 17 years of age having to find an average of £2,112 per annum. In some cases, that is probably more than some young motorists would pay for a used car. Most drivers who are at least 60 years of age are, on average, finding that their premiums are less than £500 per annum although, if you are 68, you could find yourself having to find an average of £515 per annum.2016 Budget

Most areas of the UK have seen premiums go up. The cheapest region was the Scottish Borders in which premiums averaged £531 per annum in the 4th quarter of last year. Inner London motorist are paying the most for car insurance where comprehensive car insurance premiums rose by an average of £152 per annum in the 12 months to December 2016 to an average of £1,237 per annum.

Regrettably, not enough policyholders bother to see if they can obtain their cover cheaper elsewhere. So, when you receive your renewal notice from your existing insurer, why not get in touch with us here at AIB Insurance on 02380 268 351 and let us see if we can help you save some money on your car insurance.

Thousands Of Uninsured Cars Seized

FerrariOwners of motor vehicles are well aware that, unless declared SORN (Statutory Off Road Notification) and kept off the public highway, it is a legal requirement to insure their vehicles. Therefore you may be somewhat surprised to read that Churchill Car Insurance has found that over 27,000 cars have been seized by 23 of the police forces around the UK so far this year because they do not have any insurance on them. In the whole of 2014, there were over 70,000 cars seized.

The worst area is in London where the Metropolitan police force has had to seize almost 10,000 cars. West Yorkshire police force is in second place having seized over 4,000 cars so far in 2015.

You may have thought that it is motorists that own older vehicles that are more likely to not bother to insure their cars. Well, surprisingly, a significant number of cars that were taken off the road by the police due to not being insured were luxury cars. The list includes 10 Bentleys, 3 Lamborghinis, 2 Ferraris, 40 Porsches, and 1,767 BMWs.

LamborghiniSo far this year, 1,892 cars that have been seized have been sold at auction generating over £1 million. Interestingly, the most realized for one car in the last three years was £217,933. There have also been 6,736 cars scrapped raising further funds.

The penalty for someone not insuring their car is £300 plus they will get 6 points on their license. In addition, the cost of arranging car insurance will be more expensive for many years to come. Therefore, it does seem rather shortsighted of those people that are not bothering to insure their vehicles.

Here at AIB Insurance, we arrange car insurance on numerous makes and models including some of the luxury makes mentioned above. So, why not get in touch with us on 02380 268 351 and speak to an experienced member of our team to obtain a competitive quote.