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  • Up to 45% of motorists expect their bill to increase
  • But just one in five younger drivers believe their premium will go up this year
  • One in three car owners have cut back on driving to save money

Car owners are braced for motor insurance premium increases this year as worries about regulatory changes and tax rises hit home, new research1 from insurance market research experts Consumer Intelligence shows.

 

Its research found 45% of all drivers believe their premium will rise at their next renewal with older motorists most worried about increasing bills. Just 19% of 18 to 24-year-olds expect a higher bill compared with 52% of those aged 50-plus.

 

Research with 1,063 drivers conducted online between March 17th and 18th 2017

 

Consumer Intelligence is warning that the recent Ogden rate cut to a negative -0.75% coupled with another increase in Insurance Premium Tax in June is set to drive a “massive jump in shopping around”.

 

Research among car owners shows wider concerns about the general cost of motoring with 34% of drivers saying they have cut back on driving. More than two out of five (43%) car owners are concerned about the increased cost of motoring with 17% saying they are very concerned.

 

But most drivers are focused on staying on the road no matter what happens to the cost of motoring  just 11% of car owners say they would consider giving up if the cost of motoring rose by £500 a year while a £1,000 rise would deter only 29%.

 

Car sharing clubs to save money are not popular despite the financial squeeze - just one in 20 would let others borrow their car through a car sharing club while only 7% would consider giving up their car and joining a car sharing club.

 

Ian Hughes, Chief Executive of Consumer Intelligence said:

 

“Insurers need to be prepared for a massive jump in shopping around as drivers attempt to limit the rising cost of motoring.

 

“Nearly half of all drivers expect their insurance bill to increase at the next renewal and will be looking to reduce costs against a background of rising fuel prices, road tax changes and the general cost of maintenance.

 

“The full impact of the Ogden rate cuts has yet to become clear but coupled with IPT which has doubled in less than two years it is clear that Government and regulators are having a major impact.”

 

More than half (55%) of those questioned expect to pay more for fuel over the next year while 32% believe the cost of maintenance will rise. Just 29% believe their road tax bill will rise in the next 12 months.

 


Ends

Notes to Editors

 1 Research conducted online between March 17th and 18th 2017 by Viewsbank among a nationally representative sample of 1,063 car owners aged 18-plus

 

For further information, please contact:

 

Consumer Intelligence

Elinor Zuke

07863 350270

 

Citigate Dewe Rogerson

Kevan Reilly / Phil Anderson

020 7638 9571

 

About Consumer Intelligence

Consumer Intelligence (CI) is a market research agency specialising in the General Insurance and Banking Sectors. We have spent the last 12 years perfecting the art of collecting data so that organisations can benchmark themselves. Since 2003, we have been collecting and analysing millions of prices across the telephone, direct insurer websites and aggregator channels. For more information, visit the web site www.consumerintelligence.com



 

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