AA Overview of Motor Premium Rises

by Gill Montia

Story link: AA Overview of Motor Premium Rises

According the AA, road safety trends alone are not responsible for increases in car insurance premiums.

The UK has seen a decline in its road safety record since 2001, which inevitably has had its effect on insurance premiums. However, a number of other factors are coming into play, including the development of new cars designed to crumple on impact and protect passengers. Repair costs on this type of vehicle can be high.

In addition, the number of motorists willing to make personal injury claims for relatively minor injuries is increasing.

On the other hand, some developments should be having a positive effect on premiums, for example, the Department for Transport argues that vehicles with Electronic Stability Control are up to 25% less likely to be involved in a fatal road accident.

AA research shows an average 6% increase in car insurance premiums during 2006. However consumers prepared to spend time finding the best quote can still save money as there are large discounts available from some motor insurers planning to increase their share of the market.