Car Insurance Premiums On The Rise
Published: 8 March 2010
By MoneyHighStreet Staff Leave a Comment
Updated: 8 March 2010
Car insurance premiums are on their way up according to Admiral and supported by the latest AA British Insurance Premium Index.
Car insurance premiums have held steady over the last couple of years but are now on the way up with Admiral confirming a rise of around 12% on premiums last year.
The AA British Insurance Premium Index showed that car insurance premiums rose by 7 per cent during the final three months of 2009, the fastest rise since it began compiling records in 1994.
Henry Engelhardt, chief executive of Admiral said: “Prices have been going up across the market becasue of personal injury claims and comparison sites encouraging people to look for cheaper insurance.”
He added “We think this trend will continue throughout 2010.”
There’s been a rise in ‘no win, no fee’ lawyers inflating the number of injury-related claims. Fraudulent injury claims are also on the rise, a symptom of the recession whereby customers try and make claims that they are not entitled to.
Car insurance is a legal requirement and whilst there is a lot of encouragement to get it at the cheapest price, it’s critical to get the cover you actually need, even if it does cost a little more.