This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more
Go compare with our comparison table

Car insurance premiums continue to rise

31 July 2009 / by Andy Davies

Car insurance premiums have risen by nearly four per cent in the last three months, according to AA Car Insurance.

From April to June 2009, the annual cost of comprehensive car insurance premiums increased by 3.5 per cent to £718, while over the past 12 months, comprehensive premiums have shot up by 11 per cent.

The survey of 96 car insurance providers also shows the average premium for third party, fire and theft  car insurance, which is typically bought by young and inexperienced drivers, has risen by 4.6 per cent over the last three months with the average premium now costing £968.

Simon Douglas, director of AA Car Insurance, attributed the rises to the increased costs the industry is facing, he said:

"There’s no getting away from the fact that the industry continues to suffer underwriting losses, which are predicted to be in excess of £240 million this year.

Mr Douglas believes insurance providers must do more to help young drivers, as many providers will not quote for drivers under the age of 21, whilst some have withdrawn their TPFT policies altogether.

He adds that fraudulent claims are not helping the situation as they add to the cost of premiums, while claims from drivers without any insurance is adding £30 to premiums for honest drivers.

However, Mr Douglas urged drivers who need insurance cover to choose a sensible premium, he added: "Customers are being tempted by cheaper quotes that offer lower levels of cover with high excesses so it is really important that they talk to their insurer to make sure that the cover meets their needs before they buy."

Compare car insurance deals»

© Fair Investment Company Ltd


ProviderSpecial OffersGet Quotes

5 Star car insurance from £185 – That’s all 10% paid for our standard cover* .
You could save up to 20% online - 36% of customers are expected to receive the maximum saving**

Get Quotes >
Our Guaranteed Hire Car cover comes as standard with our comprehensive motor insurance.

Underwritten by U K Insurance Limited

Get Quotes >

99% of customers would buy again from LV= - Reevoo

Benefits include UK call centres, 24/7 claims helpline, unlimited cover for factory fitted phone, audio and sat nav equipment, replacement child car seats, and European car insurance cover. Tailor the cover to suit you with optional extras, such as Motor Legal Expenses, Guaranteed Hire Car, increased Personal Accident cover and Breakdown cover.

Get Quotes >

Don’t get caught out when you break down. Churchill offers free breakdown service to new Motor customers
First year Breakdown service (roadside only), provided by Green Flag, new policies only. Breakdown chargeable at renewal. Underwritten by U K Insurance Limited. Terms & conditions apply

Get Quotes >

Save 15% Online††
No claims discount up to 75%.

Get Quotes >

Comprehensive cover available from just £180 a year***.
Defaqto 5 Star Rated Comprehensive Cover, you'll benefit from the following as standard: Uninsured driver cover, Vandalism cover, Guaranteed replacement car, Emergency any driver cover, Cover for driving in the European Union for an unlimited period.

Get Quotes >
New customers can get 12 months' breakdown cover for the price of 6 when they buy AA Car Insurance. You also get access to member benefits, including up to 20% off at Moto service areas. Get Quotes >

Get Comprehensive Car Insurance Quotes Online.

Get Quotes >
Free Annual Roadside Assistance and Recovery Breakdown Cover worth £49.
Over 50s save at least £50.
Get Quotes >
With lots more cover now included as standard, AXA car insurance offers you extra reassurance on the road.
If your car’s hit by an uninsured driver, you’ll keep your no claims discount and get back your excess with AXA’s uninsured driver promise* – only with our comprehensive car insurance (*We will return any No Claims Discount and Excess if you are not to blame – you will need to provide the make, model and reg number of the other car. T&Cs apply.)
Get Quotes > compare prices from over 130 motor insurance providers to find you their best dealGet Quotes >
Save up to £230 on your car insurance (51% of consumers could achieve a saving of up to £229.96 with car insurance based on a comparison of at least 40 companies)Get Quotes >