The latest price index from the motoring organisation and provider of discount car insurance quotes found that premium prices have risen by 15.3 per cent year on year. The index is formulated by taking the three least expensive quotes from a wide range of car insurance companies, the AA said.
The average price of comprehensive cover in the UK now stands at £971.40, the AA’s price index reported. This is a 5.4 per cent increase from its October 2011 figure of £921.38.
However, the low and high ends of the spectrum varied widely, says the AA. Scotland had the best deals, with comprehensive cover only costing £587 for a year, while the North West region toppled the scales at an eye-watering annual comprehensive premium price of £1,615 – which was even more than the £1,120 the average Londoner pays for cover.
Younger motorists are affected the most by price increases, the price index reports, with some providers simply ceasing to provide cover for anyone under 21 years of age. 2011 saw young males aged 22 and under paying 15 per cent more for their cover, with an average price quote of £3,163.
Rising insurance costs need to be investigated, the AA said, as it welcomed a report from the Transport Committee earlier this month. According to the committee’s report, rising premium prices are a result of the so-called ‘compensation culture’ gripping the UK which sees ambulance chasing solicitors encouraging spurious personal injury claims.