Car Insurance Costs Up By 40 per cent In a Year

The cost of motor insurance has risen by a record 40% in the past 12 months because fraudulent claims and injury claims, the AA has found.

Motorists are now paying an average of £892.08 to insure their car compared with £633.55 12 months ago.

This is the third year in succession that premiums have risen by more than 30 per cent, with the industry pinning much of the blame on settling personal injury claims following road accidents. Personal Injury claims now account for 50% of the cost of insurance claims, compared to 20% two decades ago. The AA said more than 200 personal injury claims are made every day.

Simon Douglas, director of AA Insurance, said “The record rises in fuel costs coupled with spiralling car insurance premiums is disappointing news and is making driving unaffordable for many, especially cash-strapped young drivers”.

MJP Motoring Solicitors