Car insurance costs reach record levels

Tue, 12 Oct 2010

The AA has witnessed the biggest jump in the cost of car insurance since it started tracking the market, BBC News reports.

According to the car insurance provider, young motorists have been forced to bear the brunt of the rise.

Indeed, premiums for 17 to 22-year-olds have risen by 47 per cent in a year.

Further to this, young male drivers were found to be paying the most.

The AA has attributed to rise in insurance costs to a surge in injury claims .

"If you have an accident which leaves someone disabled, the claim can be up to £15 million," Simon Douglas, director of insurance at the AA, told the news provider.

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

Meanwhile, Will Thomas, head of motor insurance at confused.com, recently told moneynews.com that many Britons may end up paying more for their car insurance policies if new European Union rules are introduced.

He warned that any regulations preventing providers from using gender as a factor could have a negative impact.
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