According to new statistical data, car insurance rates rose by 38 per cent throughout the entirety of 2010. The increase represents an average of £200 for each motorist.
Research from the EMB Car Insurance Price Index reveals that across all age groups in the UK the average premium price has risen to £695. The rate of growth of motor car insurance prices was more than three times higher than it was in 2009. Additionally customers of third party, fire, and theft insurance saw increases of 56 per cent. With the increase equating to an additional £322, the last resort for discount car insurance for young drivers seems to have been dashed to pieces.
Drivers within the 51 to 55 year old age group saw the largest overall increase. Those aged 17 through 20 also experienced a rate hike in the second half of 2010.
Merseyside and Manchester drivers experienced the fastest rate of price growth last year as their annual increase worked out to 49 per cent. This represents a full 10 per cent above the average for the remainder of the UK.
One car insurance industry expert commented that there is mounting evidence that the rate increases may be beginning to lose steam despite the undeniable facts that costs continue to rise. While annual price increases were quite high, the rate of those increases decreased for the second quarter in a row, the expert stated. The rate that comprehensive policies rose from October to December of 2010 was only 6.9 per cent. Moreover TPFT policies increased by only 9.2 per cent.
In response to the cost increases, the Transport Select Committee met once again to discuss the situation. Industry experts agree that the investigation launched by the TSC is a clear sign that the implications of rising costs are being taken quite seriously.