Car insurance premiums rise again
Published On 10 October 2006
Car insurance premiums have risen for the second quarter in succession, according to a new study.Figures from the latest AA British Insurance Premium Index have shown the average quoted premium for an annual comprehensive insurance policy rose by 1.24 per cent.
The third quarter of 2006 also saw premiums for third party, fire and theft insurance – typically the preserve of younger drivers – increase by 4.62 per cent.
Kevin Sinclair, AA Insurance managing director, said: "It has long been clear that the increasing cost of meeting both accident damage and personal injury claims would eventually have to be absorbed by increased premiums.
"The increase is long overdue. Premiums have been kept artificially low by the entry of new insurers seeking market share and the growth of internet sales, coupled with underlying poor results hitting insurers accounts.
"One in eight drivers is aged 25 and under, yet account for a quarter of all road fatalities – a shocking statistic of great concern to the industry. Young people, who are a large proportion of the third party cover market, are paying the price and suffering the brunt of recent premium increases."
The average car insurance premium is now just shy of £1,000.
