Cost Of Motor Insurance Continues To Rise

The cost of insuring your classic car has quite possibly been increasing over the last 12 months or so. That is something you may have noticed when receiving your annual renewal notice from your insurance company.

There has been an average increase of 16.3% in the cost of car insurance in the year to 30 September 2016

In the 12 months to 30 September 2016 the average cost of fully comprehensive car insurance has risen by 16.3%.

The AA British Insurance Premium Index for the 3rd quarter of 2016 indicates an increase in average premiums. This quarterly index reveals that, on average, a fully comprehensive car insurance policy costs 16.3% more than it did at the end of the 3rd quarter of last year. In monetary terms, that is an extra £82 per annum – no small sum. That means the average premium paid for such cover as at the end of Q3 of 2016 was £585.84.

If you compare the 2nd and 3rd quarters of 2016 there has been an increase in the cost of fully comprehensive car insurance of 3.7% that is a rise of in excess of £20 in the space of 3 months.

The situation has not been helped by increases in Insurance Premium Tax.

So, if you have received your classic car insurance premium renewal notice what should you do? Well, an awful lot of motorists merely continue with their existing insurer and pay the higher premium. However, it should not take long to find out if you can get the same level of suitable cover for your cherished vehicle for a lower premium by shopping around.

There are many providers of classic car insurance so you could contact them direct or use a broker or use one or more of the specialized price comparison websites that are available on the Internet and obtain some quotes to compare with your existing cover. If you find another insurer then you could ask your existing insurer if they can match the premium quoted by the competitor. If not, then you could consider transferring your cover to a new insurer.

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