Tech-Packed Cars Trigger Insurance Rises

By Gary Cutlack on at

Car insurance prices are at record highs, as they usually are, with the blame for the latest rises being placed at the door of the car manufacturers for making everything so complicated and therefore expensive to repair and replace.

The Association of British Insurers has added everything up and divided it by the number of people to work out the average premium price for car insurance in the UK, arriving at £462 for the last three months of 2016. That's quite a rise from the previous high of £443, calculated in early 2012.

Cars full of gadgets, sensors and screens is the problem this time around, and good old Brexit gets a mention too thanks to increasing the cost of components coming in from overseas, with the average repair price for a bent modern car now standing at a staggering £1,678 -- a 32 per cent increase in the last three years.

Insurance Premium Tax has also been on a bit of a permanent escalator and is set to rise from 10 per cent to 12 per cent this summer. In summary, spending three grand on a bike doesn't look all that silly now. [BBC]


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