Ladies' car insurance news
17/10/2007

Cheap car insurance premiums go up by 1%

The cost of cheap car insurance quotes is on a slow rise, according to the AA British Insurance Premium Index.

The Index reveals that the third quarter of 2007 saw comprehensive car insurance premiums go up by an average of 1%; the latest in a slow but sure rise that began in the second quarter of 2006.

However, the increase was more marked for those who want the cheap car insurance policies with third party, fire and theft (TPFT) cover. These motorists would have seen their motor insurance quotes go up by an average of 3.5%.

A spokesperson for the AA said: "The latest rises are in line with expectation. Car insurance premiums have followed an upward trend since the second quarter of 2006."

He went on to say that this could well be caused by the motor insurance industry being hit by the expensive flood claims of summer 2007, as well as increasingly costly personal injury claims.

He also commented: "I'm concerned about the rising cost of TPFT insurance which reflects the tragic toll of accidents among young drivers so I support the Transport Select Committee's proposal to increase to 18 the minimum age for holding a full driving license."

According to the AA's spokesperson, just as young male drivers have a higher accident rate, so do young females, with statistics showing that women under 21 are five times more likely than those aged over 35 to endanger themselves and their cheap car insurance by having an accident.