Car insurance costs 'will keep rising'
Quoted car insurance premiums are becoming more expensive, new data shows.
Motorists are likely to find it increasingly difficult to secure cheap car insurance premiums, according to the AA.Its benchmark British Insurance Premium Index shows that the average quoted premium for an annual comprehensive insurance policy has increased by £22 over the past quarter.
This follows a similar increase over the previous months and, according to AA Insurance director Simon Douglas, is indicative of an ongoing trend.
He explained that rising claims costs are forcing insurers to put up the price of car insurance quotes, with the number of personal injury claims alone increasing by 22 per cent over the last year. Accidents among young male drivers are also pushing up premiums.
"I believe that despite competitiveness of the car insurance market, all these factors mean that premiums will continue to rise," said Mr Douglas.
Meanwhile, research by Sainsbury's Bank shows that the overall cost of motoring has risen by 13.55 per cent over the last 12 months, with fuel costs making a large contribution to this figure.
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