Over the past 12 months, it hasn’t just been the rising cost of petrol driving motorists mad. Motor car insurance premium prices have also increased over the past year, and drivers fear that rate hikes will continue for the foreseeable future.
2011 car insurance inflation stood at 15 per cent for an average premium, says the AA. This means that the average price quote, according to the AA’s findings, stands at around £971 for a year’s worth of cover.
The AA says that from April of 2011, premium prices had increased by 40 per cent year-on-year, and while this massive increase had leveled off for quite some time, they’ve been back on the rise once more. The last three months of 2011 saw a shocking 5 per cent premium price increase alone, the motoring organisation’s figures show.
Insurance costs have been rising so quickly that the House of Commons set their Transport Select Committee to conduct an inquiry into the matter, with the committee’s findings published earlier this month. The committee report claims that drivers in the UK have succumbed to a so-called ‘compensation culture,’ leading them to make spurious insurance claims, running up costs for car insurance companies – which they then pass along to their customers in the form of increased premium pricing.
AA Insurance director, Simon Douglas, called for an end to this compensation culture in order to bring an end to the sharp upward drive of insurance premiums.