Car insurance quotes 'jump £50'

 

The typical comprehensive car insurance quote for a consumer who shops
around has risen by £50 in just three months as cheaper deals are
disappearing, the AA warned today.

The "shop around" price for annual comprehensive cover stands at £971.40, a 5.4% increase from £921.38 in October 2011, according to the body's British Insurance Premium Index.

The figure takes the average of the three cheapest quotes from a range of insurers, brokers and schemes represents a 15.3% increase on a year ago.

By contrast, the average comprehensive cover premium when the full range of quotes was taken into account rose by just 0.6% over three months to £1,458.48.

Drivers aged between 17 and 22 have been hit by the steepest shop around percentage increases since October, with the typical premium for this age group standing at £2,497, a 6.6% rise.

Simon Douglas, director of AA Insurance, said: "The difference shows that the cheaper deals are disappearing.

"Young drivers seem to be the biggest losers with a higher than average increase for them.

"It's clear that young drivers continue to be of concern to insurers, while many no longer offer cover to those under 21."

The average shop around third party fire and theft quote stands at £1,495.71, a 2.4% or £35 increase on October.

The AA said the figure is higher than the comprehensive premium because it reflects the risks for people who tend to take out this type of cover, who are typically young drivers with older cars.

Scotland remains the cheapest part of Britain to insure a car, the AA said, with the shop around premium for comprehensive cover standing at £587.

The North West is the most costly, with average premiums at £1,615, followed by London, where they stand at £1,120.

Yorkshire is only £1 behind London, with shop around premiums there standing at around £1,119.

The report follows a House of Commons Transport Committee report published last week, which found that the increase in claims for whiplash injury is the main cause of the rise in motor insurance premiums.

MPs called on the insurance industry to abandon sharp practices in the management of car accident claims.

The AA warned that following European rule changes, insurers will no longer be able to take gender into account from December this year.

"Young women will see the biggest premium increases, Mr Douglas said. "It is unknown territory for insurers who will be careful to avoid significant losses they can ill afford."

:: The AA also found that the weather has put pressure on home insurance premiums, with shop around buildings and contents insurance rising by 5.6% or just over £10 since January last year to average £211.49.

Mr Douglas said that "increasingly frequent severe weather" had added to insurers' worries.

He added: "In addition, economic pressures result in more theft claims. According to the British Crime Survey, domestic burglary in England and Wales grew by 10% over the 12 months to the end of June 2011."

PA

News
people'It can last and it's terrifying'
Sport
Danny Welbeck's Manchester United future is in doubt
footballStriker in talks over £17m move from Manchester United
Sport
Radamel Falcao
footballManchester United agree loan deal for Monaco striker Falcao
Sport
Louis van Gaal, Radamel Falcao, Arturo Vidal, Mats Hummels and Javier Hernandez
footballFalcao, Hernandez, Welbeck and every deal live as it happens
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Sport
footballFeaturing Bart Simpson
News
Kelly Brook
peopleA spokesperson said the support group was 'extremely disappointed'
Sport
Andy Murray celebrates a shot while playing Jo-Wilfried Tsonga
TennisWin sets up blockbuster US Open quarter-final against Djokovic
News
i100
Life and Style
techIf those brochure kitchens look a little too perfect to be true, well, that’s probably because they are
Arts and Entertainment
Alex Kapranos of Franz Ferdinand performs live
music Pro-independence show to take place four days before vote
News
news Video - hailed as 'most original' since Benedict Cumberbatch's
Arts and Entertainment
booksNovelist takes aim at Orwell's rules for writing plain English
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Head of IT (Windows, Server, VMware, SAN, Fidessa, Equities)

    £85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...

    Technical Software Consultant (Excel, VBA, SQL, JAVA, Oracle)

    £40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...

    SQL DBA/Developer

    £500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...

    .NET Developer

    £650 per day: Harrington Starr: .NET Developer C#, Win Forms, WPF, WCF, MVVM,...

    Day In a Page

    Alexander Fury: The designer names to look for at fashion week this season

    The big names to look for this fashion week

    This week, designers begin to show their spring 2015 collections in New York
    Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

    'I like Orwell's writing as much as the next talented mediocrity'

    Will Self takes aim at Orwell's rules for writing plain English
    Meet Afghanistan's middle-class paint-ballers

    Meet Afghanistan's middle-class paint-ballers

    Toy guns proving a popular diversion in a country flooded with the real thing
    Al Pacino wows Venice

    Al Pacino wows Venice

    Ham among the brilliance as actor premieres two films at festival
    Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

    Neil Lawson Baker interview

    ‘I’ve gained so much from art. It’s only right to give something back’.
    The other Mugabe who is lining up for the Zimbabwean presidency

    The other Mugabe who is lining up for the Zimbabwean presidency

    Wife of President Robert Mugabe appears to have her sights set on succeeding her husband
    The model of a gadget launch: Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed

    The model for a gadget launch

    Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed
    Alice Roberts: She's done pretty well, for a boffin without a beard

    She's done pretty well, for a boffin without a beard

    Alice Roberts talks about her new book on evolution - and why her early TV work drew flak from (mostly male) colleagues
    Get well soon, Joan Rivers - an inspiration, whether she likes it or not

    Get well soon, Joan Rivers

    She is awful. But she's also wonderful, not in spite of but because of the fact she's forever saying appalling things, argues Ellen E Jones
    Doctor Who Into the Dalek review: A classic sci-fi adventure with all the spectacle of a blockbuster

    A fresh take on an old foe

    Doctor Who Into the Dalek more than compensated for last week's nonsensical offering
    Fashion walks away from the celebrity runway show

    Fashion walks away from the celebrity runway show

    As the collections start, fashion editor Alexander Fury finds video and the internet are proving more attractive
    Meet the stars of TV's Wolf Hall... and it's not the cast of the Tudor trilogy

    Meet the stars of TV's Wolf Hall...

    ... and it's not the cast of the Tudor trilogy
    Weekend at the Asylum: Europe's biggest steampunk convention heads to Lincoln

    Europe's biggest steampunk convention

    Jake Wallis Simons discovers how Victorian ray guns and the martial art of biscuit dunking are precisely what the 21st century needs
    Don't swallow the tripe – a user's guide to weasel words

    Don't swallow the tripe – a user's guide to weasel words

    Lying is dangerous and unnecessary. A new book explains the strategies needed to avoid it. John Rentoul on the art of 'uncommunication'
    Daddy, who was Richard Attenborough? Was the beloved thespian the last of the cross-generation stars?

    Daddy, who was Richard Attenborough?

    The atomisation of culture means that few of those we regard as stars are universally loved any more, says DJ Taylor