Biggest Ever Rise In Car Insurance Premiums

Car Insurance Premiums IncreaseOver the last 12 months, young drivers in the UK have seen their car insurance premiums jump higher than ever before.

New figures published today by the AA reveal a whopping 51% rise in the cost of car insurance for motorists aged 17-22 in the past year alone.

The huge rise is being attributed to road accidents and soaring legal costs, due in part to a flood of personal injury claims from “no-win, no-fee” lawyers who take a 40% cut in any damages awarded.

The insurance premium increase has left young male motorists bearing the brunt of the costs, and in some cases paying premiums double the cost of their female counterparts – with average premiums at £2,457.

In most cases the quoted insurance price tends to be higher than the value of the actual car, and has triggered a number of complaints from young motorists that driving in the UK is quickly becoming unaffordable for young men in particular.

Young female drivers have also been affected, seeing an overall rise of their insurance premiums by 40% over the past 12 months. The average premium for young women is currently £1,423 with average premiums for all UK drivers offered by the insurance industry as a whole have hit £704.

Commenting on their recent findings, the AA said that the soaring cost of insurance premiums have risen to reflect the potential claims it could face in the event of death or serious injury.

“If you have an accident which leaves someone disabled, the claim can be up to £15m,” said Simon Douglas, director of insurance at the AA.

“Young men are twice as likely to be involved in these incidents than young women.”

In recent weeks the Association of British Insurers has called for a minimum 12-month learning period before young drivers can take the test. This would have taken the minimum age for driving unsupervised up to 18.

“Introducing a longer and more structured learning period may frustrate some youngsters, eager to get behind the wheel.

“But better this, than they become another tragic statistic,” said Nick Starling, the ABI’s director of general insurance and health.

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