Brexit raises car insurance costs to 2-year high in Britain

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Brexit raises car insurance costs to 2-year high in Britain

Car insurance premiums have increased in Great Britain for the first time in two years, since January 2017, the BBC reported on Saturday, 19th January. According to AA, the well-known insurance company, this is mainly on account of the unpredictability following the looming Brexit in March 2019.

According to reported statistics, policy costs have increased by around 2.7% and cost around £610 in the country. Janet Connor, AA's director of insurance told BBC,"Regardless of what the final deal looks like, the market has continued to battle with the value of sterling.This has led to the rising cost of imported car parts, further adding costs to the car repair industry which ultimately finds its way to the premiums we pay."

Insurance policy seekers also have to shell out additional premium because the reduction in claims costs will only be implemented over a year later, in April 2020 because of the delay in implementing the provisions of the Civil Liabilities Bill, which would have helped the insurance seekers reduce their premiums.

This, despite the fact that the Bill has been passed as a law by the British parliament. With regard to this delay, Connor said, "Although the Civil Liabilities Bill has now been ratified, delaying the new provisions until April 2020 has meant that recent premium reductions in expectation that claims cost savings along with upward adjustment of the discount rate were premature."