He giveth with one hand yet he taketh with the other – that’s precisely what Chancellor,George Osborne will be doing again soon; especially if fuel prices continue to topple as they have been doing of late.
Yes, just when hard-pressed UK motorists thought they were finally onto a good thing (after car insurance premiums have steadily began to rise on the back of the Treasury’s long time earmarked Insurance Premium Tax (IPT) rate kicking in, petrol prices had slumped over Christmas providing a healthy dose of seasonal cheer to one and all), this coincidentally-sourced parity is about to dissolve.
Having only just started to take stock of the 3.5%-based IPT-derived motor insurance premium increases -itself coming on the back of last October’s (average) £26 premium rise – UK drivers might have thought their luck was finally in as they’ve observed forecourt fuel prices (spearheaded by the supermarket retailers) falling like stones in recent weeks; with even diesel-powered vehicle’s owners finding themselves quids in.
But as usual the joy will be short-lived according to recent reports that an additional ramping up of policy prices is now on the cards. And the reason for this? Just wait until you hear….
Experts are predicting another overall car insurance premium rise based on the somewhat perverse fact that petrol prices have dropped recently, which leading insurance providers go to great lengths to explain means that there are therefore more of us taking to the roads in our cars to take advantage of this cheap petrol that’s currently swilling around Britain.
And more drivers on the road apparently equals greater chances/instances of traffic accidents occurring, so says accountancy firm, PwC’s UK General insurance Leader, Mohammad Khan.
Indeed, Khan states that; “Lower petrol and diesel prices generally tends to encourage more drivers on the road and, unfortunately, an increased number of accidents,” going on to add;
“This leads to an increased number of claims insurance companies have to pay out and is translated into to higher premiums for the general public.”
Khan goes as far as to predict prices going up to by anywhere between 1% and 7.5% compared to 2015, which in monetary terms could see average motor insurance premium quotes being added to, to the tune of some £47. So for many British motorists it may soon to a case of robbing Peter to pay Paul in order to be able to afford to stay on the roads.