Soaring motor insurance premiums in Britain

The various policy changes have led to a significant increase in motor tariffs in the UK. In 2018, policyholders had to pay an average of 208 GBP (264 USD ) more than in 2015.

This dramatic spike in the cost of motor insurance is accounted for by two main factors:

• the increase in the Insurance Premium Tax (IPT)
• the change in the Ogden Rate (discount rate for motor boldly injury claims)

IPT, whose standard rate has gone four-fold since 2015, is a tax levied by insurance companies on behalf of the State on all written insurance policies. Its increase results, thus, in the rise of contributions, which have skyrocketed over the past three years.

Read also | UK insurance market