CAR insurance soared by a record 40.5 per cent in year in UK
Wednesday, October 13, 2010
CAR insurance premiums have soared by a record 40.5 per cent in year in UK
The average comprehensive policy now costs £703.79, according to research by the AA.
Meanwhile, third party, fire and theft cover - often used by young and higher-risk motorists - has soared to an eye-watering £1,098. Seven people are killed or seriously injured every day in accidents involving young drivers, leading more than half of insurance firms to refuse cover to anyone under 21.
Those males between 17 and 22 who can get insurance saw their premiums rocket 46.6 per cent to £2,457.
Women in the same age group faced an even higher 58.7 per cent jump, but their policies still average a lower £1,423.
The huge rises have come as insurance companies paid out an average of £123 in claims and costs for every £100 received in premiums.
The AA described that as "unsustainable" and blamed a combination of rising fraud and increased personal injury costs.
It said the insurance industry had been unprofitable for years as intense competition kept premiums artificially low. And it warned steep increases were likely to continue next year to counter rising claims costs.
The AA pointed out that one car insurance company had gone into administration in the past year, while three more had either left the market or intended doing so.
Others were hiking premiums and being more selective about who they insured.
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Nearly a third of male drivers killed or seriously injured during 2009 were under 25, with under 21s TEN times more likely to have an accident than those over 30.
The cost of their claims was also three times greater than for the older age group.
Read more: http://www.thesun.co.uk/sol/homepage/motors/3177228/Car-insurance-up-by-40-in-a-year.html#ixzz12EU4ZfGN
The average comprehensive policy now costs £703.79, according to research by the AA.
Meanwhile, third party, fire and theft cover - often used by young and higher-risk motorists - has soared to an eye-watering £1,098. Seven people are killed or seriously injured every day in accidents involving young drivers, leading more than half of insurance firms to refuse cover to anyone under 21.
Those males between 17 and 22 who can get insurance saw their premiums rocket 46.6 per cent to £2,457.
Women in the same age group faced an even higher 58.7 per cent jump, but their policies still average a lower £1,423.
The huge rises have come as insurance companies paid out an average of £123 in claims and costs for every £100 received in premiums.
The AA described that as "unsustainable" and blamed a combination of rising fraud and increased personal injury costs.
It said the insurance industry had been unprofitable for years as intense competition kept premiums artificially low. And it warned steep increases were likely to continue next year to counter rising claims costs.
The AA pointed out that one car insurance company had gone into administration in the past year, while three more had either left the market or intended doing so.
Others were hiking premiums and being more selective about who they insured.
Advertisement
Quantcast
Nearly a third of male drivers killed or seriously injured during 2009 were under 25, with under 21s TEN times more likely to have an accident than those over 30.
The cost of their claims was also three times greater than for the older age group.
Read more: http://www.thesun.co.uk/sol/homepage/motors/3177228/Car-insurance-up-by-40-in-a-year.html#ixzz12EU4ZfGN
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