A new study from the AA has found that the typical cost of comprehensive cover in the UK has risen to an unprecedented more than £1,000 a year.
The AA British Insurance Premium Index recently discovered that prices for comprehensive motor car insurance increased by 8.5 per cent in comparison to last year, resulting in the cheapest average car insurance rates now stood at £1,034 for annual cover. However, younger motorists were found to be the worst off, as cheap car insurance for young drivers was out of reach for most with an average cost of £2,792 for men between the ages of 17 and 22 and £1,995 for their female counterparts.
The worst regions when it came to car insurance companies charging their customers the most were found to be Liverpool and Greater Manchester with an average of around £1,648 a year for comprehensive cover. However, there have been some insurers who have been attempting to preserve their customer base by slashing prices lately with some effect.
AA Insurance’s director, Simon Douglas, declared that the insurance industry was undeniably ‘in turmoil’ as a result of massive accident claims costs that have been driving up prices. Mr Douglas said that there has been a concerted effort to crack down on insurance fraud, but the number of whiplash accident claims being made against the nation’s insurers is still threatening to drown insurance providers under a £2 billion a year tide of claims, a legal bill that adds around £90 a year to the cost of honest drivers’ insurance premiums.