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Posted July 22nd 2008

The Rising Cost Of Car Insurance Premiums!

With costs rising in every sector from car fuel to groceries at an alarming rate, average car insurance premiums are also increasing according to the AA’s quarterly British Insurance Premium Index.

In the three months up to the end of June, the sum of £20 has been added to the average quoted car insurance premium for comprehensive cover. Astonishingly, the average premium according to the AA now stands at a whopping £700.

The misery of higher car insurance premiums doesn’t end there, if you take out third party fire and theft cover, the sum of £45 has been since the end of March 2008, meaning that the average now stands at £884. Third party fire and theft insurance is often taken up by young drivers or motorists who can’t afford comprehensive cover.

According to AA car insurance, some of the reasons for the increases are due to rising claims costs including personal injury and legal claims in addition to vehicle repair bills.

The rising cost of car insurance is bad news for drivers, especially, when the cost of motoring has never been so high and will only add to the burden of the British public. The fear amongst many is that these latest increases will only serve to encourage more uninsured driving.