Motor Insurance Premiums up 7.6% in 12 months
I don’t know about other motorists but certainly my salary is not rising in-line with inflation and the latest rises in car insurance premiums, released by the AA’s benchmark British insurance premium index.
The latest figures show that the UK average premium quoted for an annual comprehensive car insurance policy rose 3.1% or £22 over the past quarter, a similar rise to the previous three months. Over the year, quoted premiums have risen by £50 or 7.6%, to an average of £724.28.
AA added the Shoparound index, which better reflects the premiums paid after buyers shop around, has also risen as buyers can now expect to shell out £486 for their annual comprehensive cover: £10 (2%) more than three months ago and a rise of £39 (8.7%) since this time last year.
The average quoted premium for third party, fire and theft cover, typically bought by young drivers, has reduced fractionally (by just 0.6% to £879).
Simon Douglas, director of AA Insurance, said: “Despite these rises the car insurance industry continues to make an underwriting loss: for every £100 taken in premiums, more than £105 is paid in claims. “Insurers are particularly concerned about increasing legal costs and personal injury claims which last year rose by 22%.”