Study indicates car insurance premiums have already risen

With many insurers predicting a hike in car insurance premiums in 2010, a new study has indicated that this process is already underway.

Research conducted by market research firm Consumer Intelligence indicated that the cost of the average deal has already risen by nearly 20 per cent during the last 12 months.

The company says the average UK annual premium is now £564.19, although young drivers in particular may be required to pay more for their car insurance.

Consumer Intelligence reported that 17 to 24-year-olds saw the most dramatic rise in costs, with the average quote increasing by 25 per cent during 2009.

Motorists in this age bracket can now expect to pay £1,489 per year in insurance costs, it reported.

Consumer Intelligence managing director Ian Hughes said: "These figures show the upward pressure on pricing has well and truly broken through.

"The worry, obviously, is that this could result in more motorists simply choosing not to insure their vehicles and drive illegally, or feel that they can no longer afford to run a car."

Last week, Steve Lewis, chief executive of Zurich's UK General Insurance arm, said rising claims costs were a major problem for all cover providers.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-01-26 13:51:26 © Moneyextra.com