UK Car Insurance Premiums Rise by 40% in March

UK drivers are being hit by the constantly growing cost of car insurance. In the end of March, average premiums reached £892, which is 40% more than last year.

In the opinion of experts at Automobile Association (AA), such a dramatic rise is due to increased levels of fraud and injury claims. Interestingly enough, the number of collisions in UK fell, but the number of injury claims rose as drivers started to refer to accidents that occurred several years ago.

Commenting on the market situation in the automobile insurance industry, Mr. Douglas of AA Insurance said that these price changes make "driving unaffordable for many – especially cash-strapped young drivers."

Young men have faced a 64% rise in auto insurance premiums, which went up from £2,431 to £3,052. A rise that has been even more dramatic affected third party, fire and theft cover. The cost of insurance increased by more than 82% and reached £1,533.

Mr. Starling of the Association of British Insurers (ABI) hopes that the Government's reform of civil litigation will lead to cheaper car insurance.