Car Insurance Premiums Increase By 40%

Car insurance premiums have risen by a record 40% in the year to fraud and personal injury claims would continue to cover the cost of the research showed today.

The average price of a comprehensive policy, based on the three most competitive quotes, was 892 pounds at the end of March was 40.1% over the previous year and the largest annual increase recorded by the AA, the index since its inception in 1994.

Young drivers continue to pay the price increases, the cost of coverage for drivers aged between 17 and 22 jump 64% to an average £ 2,431, rising to £ 3052 for young men.

The biggest trip was to cover third party fire and theft policies, often characterized by young drivers who can not afford full coverage, with premiums rising by 82.1% to £ 1,533 that companies insurance continue to leave the area and thereby reduce competition.

AA said the main factors pushing up the cost of auto insurance continues at high levels of fraud and costly, because of injuries.

The group said although the number of accidents on British roads are falling, the number of claims for whiplash injuries continued to increase, with more than 200 applications a day, often for accidents to Three years ago, in the absence of any mention of injuries were made at the time.

But he added that the recent proposals by the Lord Chancellor Kenneth Clarke to reduce the costs associated with "no-win-no fee" claims should help improve the situation if they become law.

Simon Douglas director of AA Insurance, said: "The record increase in fuel costs and speed up car insurance premiums is a disappointing news and will make driving too expensive for many people, especially cash-strapped young drivers.

"Despite the sharp increase in premiums, insurers are still losses if the large underwriting loss in 2009 is probably now been halved."

He added that although insurance premiums for motor vehicles rose by 5.9% in the first three months of 2011, during which usually cover the cost of a static, add the rest of the year was likely to be smaller and excursions price for the entire 2011 was probably greater than 20%.

But the Association of British Insurers has warned that if nothing is done to reduce the cost of injury claims, auto insurance premiums continue to rise.

Nick Starling, ABI director of general insurance and health, said: "the projects recently announced by the government to reform the civil case go a long way to reduce unnecessary and disproportionate legal costs and must carry auto insurance cheaper in the future.

"Now we have to deny the charges - if all the information about personal injury lawyers of the claimants' continue to be sold and the management company claims."

The cost of home insurance to record levels in March, as increased insurance premiums for the following winter high in the claims.

The average cost of coverage of buildings increased by 13.6% over the year to the end of March to 147.29 pounds, while premiums increased 11.9% content of 76.39 pounds.

Douglas said: "As the industry's concern for the increasing frequency and severity of extreme weather events we will see premium increases are fairly modest."