The Association of British Insurers (ABI) has revealed average car insurance premiums have risen by 11% in the past year.
The typical premium for an annual policy is now £484 and has seen the fastest increase year-on-year since records began five years ago.
The rising cost of insurance premiums will put further pressure on the government to change its decision to reduce the personal injury discount rate earlier this year.
The ABI has stated the change in discount rate is the main reason behind the rise along with the latest increase in insurance premium tax which rose by 2% last month.
Huw Evans, Director General of the ABI commented: “This dramatic increase drives home how important it is the government press ahead with a new framework for the discount rate and call a stop to further hikes in insurance premium tax.”
The youngest and oldest drivers are expected to suffer the most from the increases as they are likely to face rises even higher than what has been highlighted.
In order to combat these rising costs fleets are turning to telematics systems with integrated fleet tracking and dash cam technology.
3G HD dash cam technology and in-car camera solutions are allowing fleets to provide their insurers with FNOL (First Notice of Loss) in the event of a collision/road incident. With valuable video evidence insurers are able to process claims faster and more efficiently and determine which party is at fault, eliminating any grey areas or missing information.
Insurance providers are becoming increasingly aware of the benefits of in-vehicle cameras and telematics systems and how the data can assist with claim processing and encourage more responsible driving. As a result many fleets implementing such technology are experiencing lower insurance premiums and fewer accidents.
For more information on integrated fleet tracking with 3G HD dash cam technology check out our Award-Winning SmartCam solution here and begin combatting rising insurance premiums today.