A car insurance comparison website has made the prediction that car insurance will be, on average, £1000 by 2018. Are they right? Let’s take a look…
As we speak, the average price for a car insurance policy in the UK is somewhere around £770, which is more expensive than in 2016. About £100 more expensive if reports are to be trusted.
I have mentioned before that insuring a motor vehicle is set to become more expensive once the new personal injury laws come in from the government, although it is yet to be seen whether or not they go back on their original plans.
However, if we believe the statistics from the car insurance comparison website, about how policies may be £1000 this time next year, then if you ask me many people in the UK are going to be outraged. It wouldn’t surprise me if many decide to get rid of their car altogether.
So why is car insurance set to get more expensive anyway? Below are some of the reasons:
Switching to Self Driving Technology
Although many experts are predicting that fully fledged self driving cars won’t be around until 2040, the time for bringing the technology to our roads is right now, with many major brands looking to start trying out certain features.
While this happens, car insurance might become more expensive as accidents become common where people are confused about who is to blame.
This could even lead to motorists having to take out 2 car insurance policies, one for when they are driving manually and one for when their car is driving…so to speak.
More Expensive Gadgets
It is also predicted that as cars come with more expensive gadgets already installed, then insurance companies are going to start reflecting that in the quotes they offer.
In-car tech such as Sat Navs, Parking Assistance Camera’s and Wi-Fi Inter Connectivity is all becoming more common, but the downside is that thieves are now targeting cars that have this kind of technology, while at the same time they require specialist repair work when things go wrong.
Telematics Makes it More Expensive
While I have talked many times about how telematics makes car insurance cheaper for many people, it seems this car insurance comparison website reckons it might make it more expensive for others.
A fair point if you ask me, because at the end of the day not everybody is a safe driver who obeys the laws of the roads and impresses the car insurance companies with their driving.
It’s only natural that as more people install telematics, for some, the quotes they get offered will be in the region of £1000 by 2018.
While I don’t think the average car insurance quote will be £1000 by this time next year, many reports are suggesting it will be more expensive.
There is something you can do about it though, and it all starts with comparing car insurance…which can be done right here.