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Car insurance premiums reach a new record high

3rd Feb 17 9:50 am

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Car insurance premiums have reached a new record high in the UK, this is partly due to the fact complex electronics being put in cars have made repairs more expensive.

According to the Association of British Insurers (ABI), it found that in the last three months of 2016 that the average comprehensive insurance policy costs £462.

The previous highest figure was recorded in Spring of 2012 where the average sat at £443.

The complicated electronics found within cars nowadays is helping push up the prices of repairs, paying for spare parts is also getting more expensive due the full in the pound.

The ABI said the average repair bill has risen by a massive 32 per cent over the last three years.

The ABI also warned that premium prices could rise even further if the government goes ahead with plans in reviewing the so-called discount rate.

When accident victims receive compensation, the sum is then discounted to make up for the extra investment they are likely to obtain.

Rob Cummings, the ABI’s head of motor and liability, said: “The sudden decision to review the discount rate has the potential to turn a drama into a crisis, with a significant cut throwing fuel on the fire in terms of premiums,”

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