Brexit concerns partially to blame for higher car insurance premiums

Brexit concerns are partially to blame for a rise in car insurance premiums, according to the AA.

Data from the AA Index suggests the average cost of an insurance policy has risen to £609.93 — a 2.7 per cent rise over the last three months and the first-time rates have increased since the first quarter of 2017.

Janet Connor, director of insurance for the AA, said: “Underlying all of this of course are concerns surrounding Brexit. Regardless of what the final deal looks like, the market has continued to battle with the value of sterling.

“This has led to the rising cost of imported car parts, further adding costs to the car repair industry which ultimately finds its way to the premiums we pay.”

Alongside Brexit, it’s thought the introduction of the Civil Liabilities Bill in 2020 — which aims to limit the cost of whiplash claims and ultimately premiums — is aiding a creep in the rise of current prices along with the increasing complexity of modern cars.

Connor added: “Although the Civil Liabilities Bill has now been ratified, delaying the new provisions until April 2020 has meant that recent premium reductions in expectation that claims cost savings along with upward adjustment of the discount rate were premature.

“In addition, insurers are under pressure from increasing costs of crash repairs thanks to the growing complexity of modern cars, contributing to the new upward tick in premiums.”