18 January 2008
The average UK annual car insurance premium is now more expensive than it has ever been, the AA confirmed yesterday.
According to the car insurance provider's British Insurance Premium Index, premiums continue to grow at around 10% per year.
In addition, the AA has found that the cost of repairing vehicle damage is also increasing by 5% annually - due to increased expensive-to-replace 'optional extras' and increasingly advanced safety systems being fitted.
"The irony of this is that you are much less likely to be killed in a serious accident – and are thus more likely to make a personal injury claim, the cost of which will ultimately find its way to car insurance premiums," John Close at the AA commented.
The AA also found that accidents involving drivers who had not taken out car insurance had dropped by 5.8% last year.
A police crackdown has also seen 150,000 uninsured vehicles seized in 2007.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.