UK
car insurance premiums took their biggest-ever jump upward during the last three months of 2009, it's emerged. The latest AA British Insurance Premium Index shows that young drivers are bearing the brunt of cost increases, while Scotland has experienced the smallest rise in
car insurance costs.
According to the motoring organisation's data, even the cheapest
car insurance quotes have gone up by more than 11 per cent. The average quoted premium for comprehensive
car insurance accelerated by 18.7 per cent over the course of 2009.
Simon Douglas from AA Insurance says providers have been struggling to overcome "exhausted reserves" as they contend with sharp rises in settlement costs and the frequency of personal injury claims.
"The cost of accident damage has also been rising steadily, despite a fall in the number of accidents on Britain's roads," he notes. "The spate of collisions during the recent wintry spells, resulting in about 30 per cent more claims than normal, may reverse that trend over the short term, though."
Rising fraud is also to blame, while price comparison sites mean insurers are less likely to offer "generous introductory rates" because there's little chance they'll retain customers at realistic renewal premiums, he adds.
