No it's a good price but it's nearly 40 quid more than last year which is a 20% or so increase. IPT has only gone up by another 2% so where has the extra 18% come from?
Possible factors contributing to the 18%;
- more technologically advanced cars costing more to repair; much of the technology (sensors and radars) is expensive to replace and if it’s positioned at the front of the car will be susceptible to damage in a front end impact
- weaker pound and the impact on car parts (costing more) imported from overseas for vehicle repairs
- increases in insurer’s own staff and accommodation costs etc. (salary and rent/lease costs)
- any increases in insurer’s suppliers costs charged by the suppliers to the insurers (cost of courtesy cars, cars being repaired outside insurer’s own repairer network (more expensive than if they’re repaired within their own repairer network)
- any increase in the number of uninsured drivers on the road? If so, law abiding car owners like you and I who insure their cars will pick up the costs of injuries or damage caused by uninsured drivers through increased premiums
There will no doubt be other factors which, along with the above, will have an impact on an insurer’s bottom line result. Insurers are in business to make money, so if their car insurance portfolios are loss making or not delivering the level of profit they require, then they’ll put their rates up and the likes of you and I will ultimately pay higher premiums.