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!
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