UK Car Insurance News
search advanced search

Home >> Car Insurance News

Motor insurance premiums break the 1k barrier

Article by Simon Christopher
Posted: 29/1/2010 - Last updated: -
Rating: 0.00 0.00 (1 votes)

The average cost of car insurance in the United Kingdom has topped £1,000 for the first time. The AA says the steep rise is partly down to an increase in the number of settlements in personal injury cases.

Year-on-year, the average fully comprehensive quote rose 18.7%, the biggest annual leap since the AA began keeping records in 1994. That includes a 7.2% rise in the past three months alone, fuelled by an increase in accidents caused by the bad weather.

AA car insurance director Simon Douglas said the yearly rise was exacerbated by two factors. Firstly, there has been an increase in legal claims for injuries such as whiplash which people were less likely to follow-up in the past. Secondly, insurance fraud is still a problem, adding around £44 to the average premium.

The average premium for third party, fire and theft is actually £252 more a year than fully comprehensive. That may not make sense at first glance but is explained by the fact that the option is more likely to be taken up by younger drivers who pay more for insurance and would otherwise be paying an even higher rate for fully comprehensive.

The figures are put together by looking at the three lowest quotes on the market for particular types of customer. Research shows that the actual policies taken out by customers are usually from among the three cheapest quotes.

Surprisingly quotes on comparison sites rose quicker than the overall average in 2009. That appears to be because insurers are concluding that offering heavily discounted first-year quotes to hook new customers has failed to pay off as people are willing to shop around again the next year rather than pay the firm's "standard" rate.

That's not to say shopping around doesn't pay off. One source estimates that sticking with an existing insurer from year to year works out on average to be £141 more expensive than the cheapest option from a rival firm.

PLEASE NOTE: News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature, some of the information in news stories including any references to taxation, legislation, regulation, or other issues may no longer be current.

Copyright UK Insurance Index All rights reserved.

comments about this article

Comments About this Article:

 Add a Comment

share this article

Share this Article:

rate this article

Rate this Article:

Please rate this article between 1 and 5
with 5 being top.
All ratings received for this article.

all categories ALL CATEGORIES
A-Z Categories

popular categories POPULAR CATEGORIES
Car Insurance
Home Insurance
Life Cover
Mobile Phone Cover
Pet Insurance
Travel Insurance

directory categories DIRECTORY CATEGORIES
Home & Property
Insurance Brokers
Life & Protection
Non UK Insurers
Pet & Animal
Personal Possessions
Specialist Cover

review categories REVIEW CATEGORIES
Car & Motor
Insurance Companies
Life Cover
Pet & Animal

article categories ARTICLE CATEGORIES
Car & Motor
Home & Property
Insurance Awards
Insurance Guides
Life Cover
Pet & Animal

news categories NEWS CATEGORIES
Business News
Car and Motor News
General News
Health News
Home & Property News
Life Cover News
Pet and Animal News
Travel News


Car Insurance News RSS Feed Car Insurance News Feed

You can subscribe to the car insurance news feed above in a number of ways:

1. Drag the orange RSS button above into your News Reader
2. Drag the URL of the feed into your News Reader
3. Cut and paste the URL of news feed into your News Reader
4. Add the feed to your AOL, Google, MSN or Yahoo account by clicking the buttons below.

Add to Google

Add to My Yahoo

Add to My MSN

Add to My AOL

latest articles LATEST NEWS
Speed awareness courses have hidden cost
Motor insurer takes it day by day
Car insurance costs drop
ABI targets younger drivers
Motor insurance scandal leads to major investigation

latest listings LATEST LISTINGS
Octagon Insurance
Quote Me Happy Car Insurance
RSA echoice car insurance
Your Cover Car Insurance from Allianz
Autonet Car Insurance - up to 60% off

latest reviews LATEST REVIEWS
Heritage Classic Car Insurance
Age UK Car Insurance
Carole Nash Bike Insurance
1st Central Car Insurance
One Quote Direct Car Insurance

Home | Privacy & Cookies | Terms of Use | Contact |

Page protected, do not copy

This website uses cookies to ensure a reliable browsing experience. If you continue to use this website you are consenting to us using cookies in this way. To find out what cookies are, which ones we use and why we use them please click here.

Copyright © 2019 UK Insurance Index. All rights reserved.
All directory listings, articles and reviews are provided as information only and do not constitute advice or a recommendation of any product or provider. If you use these insurers, we take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy of these third-party web sites or companies. If you have any doubts you should consult an authorised independent financial adviser for advice based upon your individual needs and circumstances. A database of advisers in your area is available at