Motor Insurance Premiums Continue to Soar

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The last 12 months have been extremely tough on car insurance policyholders, with new research showing that premiums have increased by a record 40.5%.

individuals who hold policies for third party, fire and theft cover, which will now cost an average of £1,098 per year

According to automotive authority The AA, the cost of comprehensive motor insurance has increased by a staggering 11.5% between July and September 2010, making it even more important for motorists to get a number of quotes to find the motor insurance quote that best suits their budget and needs. According to The AA, the average cost of a UK car insurance policy is £703.79.

The increase has been felt even more by individuals who hold policies for third party, fire and theft cover, which will now cost an average of £1,098 per year, having risen by an astounding 57.1% over the past 12 months. As is to be expected, the demographic feeling the pinch the most is Britain’s young drivers, who can expected to pay an average of £2,457 for a young drivers motor insurance policy.

The report states that “Women in the same age group have seen an even steeper jump at 58.7%, although at £1,423 their premiums are nearly half those paid by men.” The AA also said that the increases in its index, based on the three most competitive motor insurance quotes available for 2,800 different customers, were the highest since its launch 16 years ago.

These incredible escalating costs can be attributed to the combination of increasing fraud and personal injury claims. The AA added that the insurance sector has been less profitable for several years as the competition has helped keep insurance premiums low. Car owners are encouraged to find a motor insurance quote that suits their budget, further than securing the first quote they receive.

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