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Posted October 2nd 2008

Young Drivers Car Insurance Premiums Continue to Rise

The extreme rises in the cost of living, coupled with the increasing tax burden is hitting most families and the older population hard, however, young people who are working and perhaps living at home with their parents, or renting, are perhaps the least affected by the current recession. This maybe true, except for young car drivers! Recent figures released from the AA’s quarterly British Insurance Premium Index confirm an upward trend for insurance premiums in the last quarter with young drivers bearing the brunt of these increases.

This is bad news for all drivers especially when the cost of motoring has risen dramatically in 2008. According to the AA, the average premium quoted for comprehensive car insurance has surpassed the £700 mark, whilst young drivers opting for third party fire and theft insurance can expect to pay on average £884 which is £45 more than the previous quarter.

To justify such rises, car insurance companies are citing the increasing cost of claims which include rising legal costs and personal injury claims. According to Simon Douglas, director of AA Insurance it is also the case that young males aged 21 or under are 10 times more likely to be seriously injured or suffer fatality on our roads than men aged 35 or over. Along with other safety and road organisations the AA is currently exploring ways of tackling young driver’s road safety.