Car insurance premiums still rising

by David Masters

Story link: Car insurance premiums still rising

Car insurance premiums continued to rise over the fourth quarter of 2008, according to data released this week by the AA.

The cost of car insurance increased by an average of 1% per month over the three month period.

Since October, the average premium for annual comprehensive cover has risen 2.9% to a record £741.66.

This is an 8.7% increase compared to the cost of car insurance at the beginning of 2008.

Meanwhile, the Shoparound premium, which averages the three lowest quotes, and is closer to the premium most buyers can expect to pay, rose by 3% in the fourth quarter, and 7.2% in 2008.

Simon Douglas, director of AA insurance, said he expects the upward price trend to accelerate.

Insurers’ costs are rising fast, he said, largely due to an increased
number of personal injury claims, but also due to higher levels of insurance fraud.

Detected insurance fraud increased 17% in 2008.

In other news, an AA spokesperson said Cristiano
Ronaldo, recently voted the world’s best footballer, would find it extremely difficult to find car insurance after his major crash last week.

It’s not just about the value of the cars Ronaldo drives – the one he crashed was a Ferrari.

“Imagine if there were three Premiership footballers in one car and they received injuries that meant they couldn’t play again.

We would be paying out for loss of earnings, and paying sponsors for failure to fulfil contracts,” the spokesperson explained.