Young driver insurance news
19/05/2009
Car cover quotes and premiums to rise this year
Underwriting losses being incurred by insurers is leading to a rise in the cost of premiums for young driver's car insurance, as well as cover for older motorists.
The AA, one of the UK's leading motoring organisations, said insurers' investment income was falling while facing higher personal injury, theft and fraud claims, as well as rising legal expenses.
Drivers can expect double digit increases in annual car insurance renewal quotes and premiums. This forecast follows a 1.3% rise in the average cost of comprehensive motor cover to just under £752.
Significantly, it has been six years since this cost has increased during the first quarter of the year. Premiums have fallen over the past five years.
AA insurance director Simon Douglas said, "Premiums tend to fall a little during the first three months of the year. It's when most car insurance renewals take place."
The AA reported there were competitive quotes as low as £504.38 - but this was an increase of a little under 1% on the previous year.
Older motorists seeking motor cover, or those looking for cheap young driver's car insurance are advised to shop around for the best quotes.
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