Car insurance premiums have risen by what's thought to be the fastest rate in history. The AA says that in the past 12 months, average rates across the industry have gone up by 40%.
The average comprehensive policy is now £892, while the average third party, fire and theft policy is now £1,533. That might seem illogical, but it's explained by the fact that the latter policy is more commonly bought by "high-risk" drivers such as young males: were they to take out comprehensive policies, the cost would be even higher. Indeed the average premiums paid by people aged 17 to 22 has gone up 64%.
As is now a predictable pattern, the AA says both fraud and personal injury claims were to blame for the price hikes. The organization noted that claims for whiplash injuries were on the rise, even though the number of crashes is falling.
The good news for drivers is that the AA believes that although premiums will continue to rise, the rate of increase should slow down during the rest of the year.