Car insurance premiums on the rise again

A report from the AA suggests that people are paying £82 more per year for car insurance, with expectations that this price will rise even higher in the future.

The report says that the average driver is paying £586 a year, a 16 per cent increase compared to last year. This is fuelled by high numbers of whiplash claims, as well as increasingly advanced technology being used in cars.

The AA wants the government to abandon any plans it might have to raise Insurance Premium Tax (IPT) any further in its autumn statement, as well as saying it is disappointed that planned reforms for false whiplash claims have been delayed.

“The whiplash epidemic has dogged the British motor insurance industry for a decade and continues to do so,” said Michael Lloyd, AA’s director of insurance. “I do recognise that whiplash can be a serious and debilitating condition. But, the activities of claim firms make life more difficult for those with a genuine injury.”

“We are witnessing sustained price increases once again, which is bad news for drivers. I can’t see an immediate end to the current upward trend.”

Drivers aged 60 to 69 years saw the sharpest increase, as prices climbed by 5.4 percent. Young drivers continue to face the highest costs for their car insurance premiums, costing £1,287 on average, rising 3.6 per cent from earlier this year.

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