There’s more bad news for drivers as it has been revealed that insurance premiums have gone up by a record amount in the last 12 months, making driving increasingly unaffordable for more people.
The depressing figures come from The AA which recently released its latest British Insurance Premium Index. It found that, over the past 12 months, fully comprehensive insurance premiums have gone up by a massive 40%, meaning the average premium now costs £892 a year.
Third party, fire and theft premiums went up even further, jumping by a massive 82% in 12 months, meaning now the average premium is £1,533. In the first three months of this year alone the rise was 10.7%.
The rise in the cost of car insurance is the highest annual rise since 1994 when the AA began to collect data. But even so, insurers are still making losses.
The rise in premiums comes as a double blow to motorists who are also having to contend with rising fuel costs. The combination of the two means that driving is now less affordable than ever, and this is leading to other problems.
The AA claims that more customers are not giving their full information now when looking for quotes, and that people are also trying to get more from personal injury claims. Such claims are one of the biggest reasons for the rise in premiums, with the ABI (Association of British Insurers) claiming that for every £1 in compensation, 87p is now added in legal expenses. Now there are hundreds of claims being made every day for accidents, sometimes for ones which occurred years ago.
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