Car Insurance - Rise in claims to up premiums - 22/10/2008

The rise in car insurance premiums is likely to continue because of the growing claims costs, according to AA’s benchmark, British Insurance Premium index.

It has emerged that insurers are concerned about personal injury claims which rose to 22% last year.

Simon Douglas, Director of AA Insurance, said: “The car insurance industry continues to make an underwriting loss: for every £100 taken in premiums, more than £105 is paid in claims.”

The revelation comes at a time when British drivers are already hit by higher road tax bills and facing an increase in petrol prices in addition to the rising cost of car insurance.

Records from British Insurance Premium index show that the average premium quoted for an annual comprehensive policy has increased by £22 over the last three months. Records also suggest that there was a similar increase over the previous quarter.

A recent study by Sainsbury's Bank shows that the total cost of running a car has gone up by 13.55% over the last 12 months, this includes fuel, tax, car insurance, servicing and MOT tests.

However, motorists have been urged to take advantage of some good value deals available on the market by shopping around to ensure that they find the most competitive deals.

 
 
Related News
  15/04/2009 - Number of convictions increases premiums. The number of convictions for driving offences can increase the cost of car insurance...
06/04/2009 - Car insurance customers told to expect double-digit hike. Motorists in Northern Ireland have been warned to expect car insurance premiums to significantly...
03/04/2009 - Motorists should “take their time” when purchasing a vehicle. Motorists looking to purchase a second-hand vehicle are being advised to take their time,...
 
Related Guides
  Car Insurance. Do I have to have car insurance? Do I need car insurance? What...
 
Related Articles
  The dangers of having a sat-nav. With a large number of the British population now having to travel as a...
25% of motorists say they drive uninsured. Recent research has shown that one in five motorists are still driving without car...
Car insurance: A battle of the sexes. You are driving along a 30mph road and are forced to slow down as...

Car Insurance News
15/04/2009 - Number of convictions increases premiums. The number of convictions for driving offences can increase...
Read More
09/04/2009 - Potholes causing havoc. Recent statistics show that potholes are costing the average...
Read More
08/04/2009 - Car insurance causing up a storm. It has been revealed that motorists in Northern Ireland...
Read More
07/04/2009 - Insured drivers urged to buy now. The Retail Motor Industry Federation (RMIF) has stated that...
Read More
More News >>