Car insurance policy costs show record rise

Car insurance costs have risen by greater than 40% over the last A year, in accordance with the AA C the biggest annual increase because organisation started collecting data in 1994.

The latest AA British Insurance Premium Index reveals that above the first with three months of this year the normal “shoparound premium” C about the least expensive three quotes for each customer C for just a comprehensive policy rose by 5.9% to 892. Additionally, it reveals that within the 12 months to 31 March the price tag rose with a record 40%.

The average quote for the other, fire and theft policy went up by 10.7% inside first quarter of 2011 to 1,533, as well as over days gone by Year by a fantastic 82%. The AA said this has been because many insurers do not offer such type of cover.

Simon Douglas, director of AA Insurance, said: “The record rises in fuel costs along with spiralling car insurance policy premiums is disappointing news, which is making driving unaffordable for most, especially cash-strapped young drivers.

“This is resulting in a lot more people withholding information when obtaining an insurance quote, or exaggerating accidental injury statements to aim to reduce their costs. However this simply piles on costs for insurers to result in yet higher premiums for honest motorists.”

Despite the sharp rises Douglas said insurers will always be making losses, even though large underwriting deficits of 2009 have probably now been halved. The motoring group added that although price increases have continued into 2011, rises on the remaining year might be smaller.

According on the Association of British Insurers, for every single 1 paid in compensation an additional 87p will be paid in legal costs. On a daily basis above 200 such claims are built, often for accidents that happened approximately four years previously, by which no mention of injury is fashioned back then.

The AA index analyses quotes from a lot more than 50 insurance carriers, brokers and schemes against a gift basket of risks typical of united kingdom driving population.

Meanwhile, insurer swiftcover.com says the 3rd of UK households with craigs list one car might be overpaying by around 29% regarding their premiums by getting multi-car policies, and may even save money through taking out separate policies.

Sarah Vaughan, motor director along at the insurer, said: “It’s simple to think that multi-car discounts must offer the affordable, but it’s clearly incorrect for every individual. It can be slightly easier but will it be value paying numerous pounds too much? No matter what discounts can be found it’s best to look around.”

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