Car insurance rate news
04/09/2008
Young driver car cover continues to rise
Young driver car insurance rates face further upward pressure after it was revealed personal injury claim payouts have been rising.
The Association of British Insurers (ABI), a trade body said to represent 94 per cent of insurance firms, has highlighted the increasing claim costs problem.
Escalating payouts mean insurers pass on the extra cost of claims to men, women and young drivers via higher premiums.
ABI spokesman Malcolm Tarling said, "There remains plenty of companies out there willing to provide competitive insurance but at the end of the day the costs of insurance across the board is going to be affected by the cost of claims."
Comprehensive motor insurance premiums for all ages have risen 5.8 per cent in a year, according to figures from Sainsbury's bank - taking the average annual cost of car policies from £486 to £514, making the search for cheap car insurance a challenging one.
Young driver car insurance policy prices have seen average rises of £45 since March 2007, taking typical premium levels to £884.
