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A leading insurance broker insists hyper-inflationary car insurance premiums in the UK will not affect motorists in the Channel Islands.
New research suggests the average premium in the UK will climb above £700 by the end of 2016 as insurance scams and rising repair bills are passed onto motorists.
However, Rob Hewlett, Director of Rossborough Insurance, said the situation in the Channel Islands was very different.
He said: “The average car insurance premium in Guernsey and Jersey is around £250 to £300 a year. There is so much price pressure in the islands. The cost of repairs continues to rise, but customer pressure keeps the pricing down and we don’t suffer from scams like so-called crash for cash incidents or staged accidents. I would be surprised if premiums go up substantially over the next 12 months,’ said Mr Hewlett.
“Using a local and expert broker can help you find the most cost-effective insurance policy to suit your needs and provide support when a claim is made.”
In the UK, a report by comparison website comparethemarket.com has found that the cost of the average premium went to £697 between June and August 2016 – a rise from £679 in the previous quarter.
Year-on-year, the figure rose by £92 and UK motorists can expect premiums to increase more towards the end of the year. As well as insurance scams and rising repair bills, a significant increase in UK insurance premium tax has also contributed to the higher premiums as insurers face increased costs, according to the research.
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