Car insurance premiums have soared by a record 40% during the past year as high levels of rascal and personal injury claims go on to pull up the cost of cover, investigate shows.
The median cost of a thorough policy, formed on the 3 many aggressive quotes available, reached 892 at the finish of March, 40.1% more than a year progressing and the greatest annual way up available by the AA given it proposed the index in 1994.
Younger drivers one after another to bear the brunt of the increases, with the cost of thorough casing for motorists elderly between 17 and 22 jumping by 64% to median 2,431, taking flight to 3,052 for young men.
The greatest travel was to third party, glow and burglary cover, policies that are frequently taken out by young drivers who cannot means thorough cover, with premiums mountainous by 82.1% to 1,533 as insurers one after another to exit the sector, shortening competition.
The AA mentioned the principal factors pulling up the cost of engine insurance one after another to be high levels of rascal and costly personal injury claims.
The organisation mentioned notwithstanding the number of collisions on UK roads falling, the number of claims for whiplash injuries one after another to rise, with more than 200 claims submitted a day, frequently for accidents that happened up to 3 years ago, when no speak of of injuries was done at the time.
But it updated that new proposals by Lord Chancellor Kenneth Clarke to limit the expenses related with “no-win, no-fee” claims should help to upgrade the incident if they turn law.
Simon Douglas, executive of AA Insurance, said: “The record rises in fuel expenses joined with arching automobile insurance premiums is unsatisfactory headlines and is creation driving unaffordable for many, mainly cash-strapped young drivers.”
He updated that nonetheless engine insurance premiums had risen by 5.9% during the initial 3 months of 2011, a time during that the cost of casing is routinely static, increases is to rest of the year were expected to be smaller, and cost hikes is to entire of 2011 were doubtful to surpass 20%.
But the Association of British Insurers warned that unless action was taken to limit the cost of personal injury claims, engine insurance premiums would go on to rise.
