The cost of obtaining car insurance for UK motorists is rising, new research has shown.
Figures released by car insurance firm AA reveal that the price of cover is unlikely to fall after growing sharply in the latter stages of 2006, meaning that many drivers could face extra costs.
This, coupled with recent reports in petrol price rises, could stretch the finances of road users even further.
According to the firm’s data, the average price of a car insurance policy that offers fully comprehensive cover rose by one per cent over the past quarter. Meanwhile, third party, fire and theft car insurance cover rose by 3.5 per cent in the same period.
John Close, insurer relations director at AA Insurance, commented: “The cost to the industry of personal injury claims and legal costs has been escalating rapidly, while accident damage costs has also risen faster than premiums.”
He added that car insurance flood claims have topped £100 million recently.
Recent data from Confused.com indicated that a ten per cent rise in the cost of third party car insurance cover had occurred over the last 12 months.