Car insurance premiums on the rise
27 August 2008
Car insurance premiums have to go up because of the rising cost of claims, according to an expert.
Malcolm Tarling, spokesman for the Association of British Insurers, said that a rise in payouts to those who have suffered personal injury mean more costs for the insurers who as a result raise their premiums.
Mr Tarling also pointed out that uninsured drivers have an effect on other drivers' car premiums.
Figures from Sainsbury's bank show that from July 2007 to June 2008 the average car insurance premium rose by 5.8 per cent.
The rising costs of car insurance premiums could be worse for young drivers, as they are the most likely group to make a claim. The average price they pay for their premium is now £884, which is a rise of £45 from last March, according to the AA British Insurance Premium Index.
In related news, a car dealer from Doncaster has been fined £35,000 by the Financial Services Authority for selling nearly 230 customers the wrong insurance policies, as reported in the South Yorkshire Star. Ringways Garages made £47,500 from the commission of the insurance, according to the paper.
