People in their late 50s and late 80s have experienced the highest annual rises of an average of £35. Motor premiums that are already at record levels may rise again between now and January , according to ABI ( ABI ). An increase in insurance tax helped send premiums 2.3% higher to £ 35 in between now and January , the ABI said. It warned that the changes made by the government to the way compensation payouts are calculated could see insurers pay more in accident claims. Those extra costs have so far been absorbed by insurers' backstop contracts with reinsurers. But with many of those contracts set for renewal in the past year and the changes to the so-called Ogden Rate likely to make them more expensive, insurers will pass those costs on to customers.
Motor premiums that are already at record levels may rise again between now and January , according to ABI ( ABI ). An increase in insurance tax helped send premiums 2.3% higher to £ 35 in between now and January , the ABI said. It warned that the changes made by the government to the way compensation payouts are calculated could see insurers pay more in accident claims. Those extra costs have so far been absorbed by insurers' backstop contracts with reinsurers. But with many of those contracts set for renewal in the past year and the changes to the so-called Ogden Rate likely to make them more expensive, insurers will pass those costs on to customers.