Fastest Rise In Car Insurance Quotes For 10 Years - August 2009

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. 

Fastest Rise In Car Insurance Quotes For 10 Years
The AA have released their latest British Insurance Premium Index and highlighted that car insurance quotes have risen by 3.5% between April and June (11% over the whole of 2009). That's the fastest reported rise in car insurance quotes for over ten years.

The AA's research found that Fully Comprehensive car insurance quotes rose by 3.5% to £778.13 over a three month period. Third Party Fire & Theft car insurance quotes rose by 4.6% to £968.22 over the same period. These rises also appear to have targeted a particular profile of customer - young drivers.

A increasing number of insurers will not even provide a quote for Third Party Only cover, whilst only a half of UK car insurance companies will provide a Third Party Fire & Theft quote.

Statistically speaking, drivers under 21 are now ten times more likely to make a claim than those aged 35. Simon Douglas, Director of AA Insurance says: "I don't see the pressure on premiums easing. Over the past three months, more than 90 per cent of quotes in the AA index added £5 or more to their premiums and only 2 per cent fell. During the previous quarter, 20 per cent had reduced their premiums."

Reasons for the Car Insurance Quote Rises
The increase in car insurance prices are being blamed on a sharp increase in fraudulent claims (brought on by the recession), more personal injury claims and an increase in legal expenses.

The headline grabbing statement from The AA contradicts reports from the UK car insurance comparison web sites who suggest that prices have remained static over the same period.

ENDS

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