Rising cost of car insurance drives motorists mad - Car insurance - News - Moneyfacts

News

Rising cost of car insurance drives motorists mad

Rising cost of car insurance drives motorists mad

Category: Car insurance

Updated: 26/11/2012
First Published: 13/04/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Another record rise in the cost of car insurance is set to drive motorists even further around the bend.

The average 'Shoparound' cost of an annual comprehensive car insurance policy has reached £892, according to the latest research from the AA.

It means premiums have increased by 40% over the past 12 months, the biggest annual increase recorded since the survey began in 1994.

The survey analyses quotes from over 50 insurance companies, brokers and schemes against a number of different risks that are deemed typical of the UK driving population.

The Shoparound premium is an average of the cheapest three quotes for each 'customer'.

The research found the average quote for a Third Party, Fire & Theft (TPFT) policy has increased by a staggering 82.1% over the past year to £1,532 as a consequence of the higher risks associated with insuring the typical young driver profile of TPFT insurance buyers.

Indeed, it is young drivers who have borne the brunt of the increases, with those aged 17-22 being asked to pay an average premium of £2,431.

Young men also continue to pay much higher premiums (£3,052) than young women (£1,767).

However, it is likely such discrepancies will begin to disappear over the coming months as the effects of a recent European ruling start to be seen.

From December 2012, insurers will no longer be able to take gender into account when calculating insurance premiums.

The likely outcome is that women will see the cost of their car insurance rise towards that of men, with younger females therefore set to suffer the most.

With the price of petrol spiralling too, it is thought many motorists are being forced off the road because the costs associated with driving have become all too expensive.

Shopping around for the very best car insurance deal is one of the easiest ways to lower the cost of your motoring.

Compare car insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Black Friday sees increased motor incidents

Today can be a day of big savings, but it could also end in tears, as research has revealed that motor incidents were up by 8.5% on Black Friday last year. It’s therefore extra important to keep an eye on traffic today, not just on bargains.

Whiplash crackdown could cut car insurance costs

Whiplash claims have rocketed in recent years, and they’re driving up the cost of car insurance. So it’ll come as welcome news that the Ministry of Justice is stepping in, and will hopefully reverse the trend.

Be extra cautious on the roads today

Today may be Halloween, but it’s also the first Monday after the clocks go back. According to Admiral, this traditionally sees a higher number of incidents on the road, and the insurer is urging motorists to exercise extra caution as a result.
 
Close