Car insurance premiums have risen five times faster than inflation in the past year but proposals to change Discount Rate calculation has slowed down their increase
Car insurance bills are rising five times faster than inflation, but the Government’s proposals to increase the Discount Rate have helped stabilise prices, according to Consumer Intelligence. The market research agency says that prices have slowed down in the past three months but tax rises, the weakness of the pound and rising claim costs mean premiums are still set to climb. Average premiums rose by 14.6% in the past year, five times more than the 2.9% the inflation rate. Average premiums for over-50s rose by 16.5% in the year to September, but their bills are the lowest at £434. Premiums for under-25s rose by 11% as increased use of telematics, or black box technology, kept prices down. But they still pay nearly four times more than older drivers at £1,719.