Cost of car insurance on the rise, survey shows

Wed, 16 Jul 2008

Vehicle owners might find there are tougher times ahead with the cost of car insurance once again on the rise, new research shows.

The AA's quarterly British Insurance Premium Index reveals that more than £20 has been added to the average comprehensive car insurance quote over the three months ending June 2008.

The increase in the cost of car insurance for younger drivers was even more marked with their average quote increasing by £45 to £884.

Simon Douglas, director of AA Insurance, said: "Car insurance costs are spiralling. While the number of casualties on Britain's roads is falling the cost of accidents is rising and young drivers are taking an increasing share of the toll."

Car insurance firms are also concerned about rising legal costs and personal injury claims and these are just two of the reasons why premiums will continue to rise, he added.

Yesterday, Confused.com advised people to make sure they have adequate levels of cover for their caravan before they set off on holiday .
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