Drivers face record rise in premiums

first_img whatsapp Share KCS-content Tags: NULL This week the AA recorded the highest rise in car insurance premiums since it began reporting market data. The average figure for the three cheapest car insurance quotes now stands at £2,457, with men aged 17-22 suffering a 47 per cent hike in just one year. The AA findings follow a recent YouGov SixthSense market report on motor insurance. The report shows that premium rises are coming off the back of a recessionary period where many consumers were forced to change their policy for both cover and cost related reasons. Fifty-seven per cent of car insurance holders who say they cancelled a policy in the past, say they did so during the recession.In addition, the graph shows that 61 per cent of comprehensive motor insurance policy cancellations recorded in the survey were carried out without the policyholder having another policy lined up; suggesting the importance of lifestage and lifestyle changes, the abandonment of car ownership and the possibility of driving without insurance.The report also suggests that premium increases could be attributed to profligate strategies adopted by insurance companies in recent years. It argues that during this period insurers often underwrote premiums in order to expand market share and policy volume at the expense of profit – an unsustainable gambit that would appear to have come back to bite insurers and consumers alike.However, insurers point to the rising cost of car repairs at a rate of between 7-10 per cent per year as one of the factors driving up premium rates. Moreover, the number and value of personal injury claims being made following car accidents has been rising, despite an overall drop in accident numbers. Insurers argue they have to build reserves in order to deal with the proliferation and inflated cost of injury claims, thereby necessitating higher premium rates. Stephan Shakespeare is founder and chief executive of YouGov. Tuesday 12 October 2010 7:59 pm Drivers face record rise in premiums Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Show Comments ▼ whatsapplast_img

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