Car insurance rises 40% in a year
21/04/2011

Insurance premiums are proving the latest motoring cost to break records.

Research from the AA has shown that the typical shop-around comprehensive premium has increased in price by 40% in just 12 months! Younger drivers have faced the brunt of increases, with the typical premium of £2,431 being paid - more than 64% higher than 12 months ago.

The Commons Transport Committee identified fraud and injury claims as among the chief causes of rising premiums. Simon Douglas, director of AA Insurance said: "Although the number of collisions on Britain's roads is falling, the number of claims for whiplash injury is rising." According to the Association of British Insurers, for every £1 paid in compensation, a further 87p is paid in legal costs.

Premiums look set to continue to rise throughout 2011; luckily Simon Douglas believes that increases over the rest of the year will be much smaller. One way to cope with these ever-increasing costs of motoring is to save money by car-sharing; so log on and find yourself a match!

Comments

Posted By Sarah Coles on 09/05/2011 06:49:51

Car Insurance premiums have risen by more than 40% over the past 12 months, according to the AA – the highest annual increase since the organisation started collecting data in 1994. The latest AA British Insurance Premium Index shows that over the first three months of the year the typical "shoparound premium" – an average of the cheapest three quotes for each customer – for a comprehensive policy rose by 5.9% to £892. It also shows that in the 12 months to 31 March the cost rose by a record 40%. The average quote for a third party, fire and theft policy went up by 10.7% in the first quarter of 2011 to £1,533, and over the past 12 months by an extraordinary 82%. The AA said this was because many insurers no longer offer this type of cover.

Posted By Cecilia on 21/04/2011 16:11:01

Car-sharing can't cut insurance costs, but our point was that if you car-share you save a lot of money which will help cover the increase. Sorry if that was a bit ambiguous!

Posted By Peter Lord on 21/04/2011 14:44:25

I don't see how lift-sharing can save insurance costs (unless one of the people sharing sells his car). Don't get me wrong, I'm a great fan of lift-sharing, but you can't justify *that* statement.

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