AA: Increased insurance claims push up premium prices

Car insurance premiums are at their highest ever levels and continuing to rise, according to one motoring organisation.

The AA claims that extra costs incurred by insurers in handling a claim – such as ambulance fees, vehicle retrieval and personal injury payouts – are being handed on to consumers by way of higher charges.

Last month, the body revealed that the price of car insurance is at an all time high – despite the fact that Home Office figures suggest car crime has fallen every year since 2003.

AA spokesman Ian Crowder says there are “three main drivers” behind the rise in premium prices.

These are “the cost of meeting accident damage claims Ö personal injury claims and uninsured driving”, which he says “continues to be a blight on Britain’s roads”.

However, according to Mr Crowder it is not all bad news for the car insurance buyer:

“The car insurance industry is extremely competitive so there are always deals to be had,” he claims.

© Adfero Ltd

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