Car insurance premiums on the rise, says AA survey.
The UK average premium quoted for an annual comprehensive insurance policy rose 3.1 per cent or £22 over the past quarter, according to the AA British Premium Index.
Over the year, quoted premiums have risen by £50 or 7.6 per cent, to an average of £724.28.
The average quoted premium for Third Party, Fire and Theft (TPFT) cover, typically bought by young drivers, has reduced fractionally (by just 0.6 per cent to £879). Young and inexperienced drivers are finding fewer insurers prepared to quote for TPFT risks and Allianz is the latest to withdraw from this market.
The AA Index has tracked industry-wide car insurance premiums for 1,000 different risks throughout the country, averaged to provide a benchmark index figure, since 1994.
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 per cent.”
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