Car insurance more expensive, study shows

Thu, 15 Jan 2009

The cost of car insurance rose sharply towards the end of last year, according to new figures.

Research by the AA reveals that the cost of the average quoted premium for comprehensive car insurance increased by nearly one per cent a month in the final quarter of 2008.

This sees the cost of car insurance hit a new high of £741.66.

Simon Douglas, director of AA Insurance, stated he expects the upward trend to continue.

"Although the bank base rate has fallen and there is widespread price-cutting across credit-crunch Britain, the costs insurers face are rising fast," he said.

The cost of personal injury claims and the expected rise in the price of repairing damaged vehicles with both push up the cost of car insurance, Mr Douglas added.

Yesterday, Direct Line announced that it is offering new customers a year's worth of car insurance cover for the price of ten months.

According to the firm, the fact it does not use price comparison websites means it can pass discounts directly on to car insurance customers .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.



Simplyhealth Dental Plan

Affordable cover from only £7.50 per month. Join now and get first month FREE

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.