According to the AA’s insurance premium index, the best price for annual cover now stands at an average of £971.40, which represents a 5.4 per cent rise from October 2011’s £921.38 average. The index, which averages the three cheapest car insurance quotes from a selection of schemes, brokers, and insurers, was 15.3 per cent higher than it was 12 months previous, though when the full quote range was taken into account, average comprehensive premium prices increased only 0.6 per cent to £1,458.48 over the past three months.
Motorists between the ages of 17 and 22 were hardest hit over the past three months with a 6.6 per cent increase. These younger drivers now face an average premium at approximately £2,497 for a year’s worth of comprehensive cover.
AA Insurance director, Simon Douglas, remarked that cheaper deals are most certainly vanishing into thin air. Younger motorists are certainly losing out the most, Mr Douglas added, which demonstrates that insurers are concerned with the risk posed by this class of inexperienced drivers, to the point that many have ceased offering cover to motorists under 21 years of age.
Meanwhile, third party fire and theft cover increased as well over the course of the past three months. The average quote now costs £35 more than it did in October at £1,495.71, which represents an increase of 2.4 per cent.