The AA has released information which revealed that car insurance premiums increased by 40% from March 2010 to March 2011. An average cost for a comprehensive car insurance policy currently reaches almost £900.
Such a high rise of car insurance prices can only be the repercussion of claims regarding personal injury or the high number of frauds.
Martin Douglas, who is the Director of Insurance at Automobile Association, knows that this increase in insurance prices will be most detrimental to young drivers. He said: “The record rises in fuel costs coupled with spiraling car insurance premiums is disappointing news and is making driving unaffordable for many, especially cash-strapped young drivers.”
Mr. Douglas believes that people might not give all the details about them when signing for a policy in order to reduce the costs. In his opinion, this will only lead to more expensive policies.
What appears to be of an interesting nature, is the fact that even more collisions have been reported since the prices got this high up. Britons are now reporting collision that happened a few years ago.
Youths are suffering the most as their premiums are now 64% more expensive than before. A cost which last year situated at £2,431 has now been reported to be somewhere at £3,000.
Swiftcover.com revealed that more than 33% of UK homes that have at least one car could pay 29% more for premiums by acquiring a multi-car policy. Their answer could consist of buying separate policies for separate cars. Insurance prices will still continue to go up as long as fuel and personal injury cases are influencing policies. People will struggle to find cheaper quotes which will eventually cease to exist.