July 22, 2008
AA figures show increase in car insurance premiums
The Automobile Association has reported that the cost of car insurance premiums has risen by an average of £20 since April. The British motoring company which was founded in 1905, has produced a British Insurance Premium index which shows that the steepest price rises were reserved for young motorists. Young drivers are now faced with a whopping £45 increase in their annual car insurance bill. Data also shows that the average cost of motor insurance is £700 per year.
According to a senior AA spokesperson, car insurance costs are currently soaring to new highs. Unfortunately, the number of car accidents in the UK is on the rise and, although there has been a decrease in the number of fatalities, young vehicle owners are facing the heaviest financial penalties in terms of insurance premiums.
The AA also pointed out that the motor industry would have to increase its efforts to work with road safety campaign groups in order to ensure that young motorists used the roads with more responsibility. Safer driving leads to less accidents and cheaper insurance premiums.