While it may seem a bit queer to welcome rising insurance costs, many motorists have done just that, after new research from the AA indicates that the average comprehensive quote ‘only’ rose by 7.7 per cent over the past 12 months from March of 2011.
The motoring organisation’s newest premium index, which is formulated by averaging the five cheapest car insurance quotes from each insurer in its database, found that insurance premiums have indeed increased from 2011 to 2012. However, the previous year’s rate hike was found to be a record 40.1 per cent, indicating that the 2011-2012 was much more affordable in terms of price increases as was 2010-2011.
Unfortunately this still means that prices did go up over the past year, even if the increase was a modest one in comparison to the one it followed. Some insurance providers are offering discount car insurance in order to attract new customers, but the majority find themselves either unable or unwilling to do so, with the average price quoted at £1,452 for a year’s worth of comprehensive cover, the AA found, and the motoring organisation found that the availability of cheap premiums has declined by 1.1 per cent overall since the beginning of 2012.
The director of the AA’s insurance division, Simon Douglas, warned that with industry costs increasing by approximately 10 per cent annually and motor accident claims spiraling upwards, it’s nearly an inevitability that more steep rate hikes are in store for all drivers.