Has your car insurance increased, and you don’t know why?


Its that time, you need to call up to renew your car insurance, and im pretty sure we have all said this “HOW MUCH”!!!!! and the poor advisor on the other end of the phone thinks….if only I had a pound for everytime I hear that!! We are all left scratching our heads as to why this increase has happened.

What you need to do firstly is check the you are comparing like for like, have you had to send your driving licence away for speeding etc, did you add an additional driver, have you moved address, have you changed your vehicle, Is the coverage the same as it was i.e. do you now use the vehicle for business. These are all reasons that are obvious, lets discuss a few that you may have not considered.


The reserves an insurance company have , have been depleted after a run of claims. They now need to top these reserves up!

Price Increase

It may be as simple as the insurance company have had a price review! After all, they are a business and need to make profit.

Insurance premium tax increases (IPT)

Up until 2015 IPT tax was set at 6%, from mid-2017 this doubled to 12%. This rise hit everyone, but those with already high insurance, typically younger drivers, will now be paying even more.

Credit score

Your credit score can lead to higher insurance costs if you choose to pay monthly. This isn’t always the case as it’s a complicated calculation the insurance companies use.

Repair costs

Repair costs in the automotive sector continue to rise every year. Unfortunately, these rising costs get passed on to us, the drivers. As much as we all love the technology and convenience added to cars, this comes at a cost, as it makes what was a simple repair now a more complicated procedure, in turn making it more expensive.    

Road accidents

There were over 26,000 people killed or seriously injured on UK roads in the year ending June 2018. The more that accidents occur, the more the insurance companies have to pay out, pushing premiums up. Even if you are a good driver, you will still have to pay more.


Gaining promotion at a company you have worked at for years could also see your premiums rise. This is because the Insurance company will assess the risk that your new job will bring. However, dont be tempted to not declare this on the insurance application. You have a legal duty to supply all the correct information. Your insurance policy could be void if you do not supply the correct information.

Insurance Fraud Taskforce

Over the last few years, claims for whiplash injuries have risen by nearly 50%. During the same period road accidents have actually fallen. The insurance companies have had to find extra funds for whiplash claims to the tune of over £1bn. The government has set up the “Insurance Fraud Task Force” to help combat fraudulent claims and the fact that fraudulent claims increase all our insurance premiums. The estimated saving in putting these measures in place is approx. £40 for each driver. The government just need to work out how this will be passed on