AA reveals rise car insurance premiums

While overall increases in car insurance have been noted in a new study, there has been a particular rise in premiums for younger drivers.

The cost of motor cover increased significantly as 2009 came to a close, the AA reveals.

Releasing figures from its AA British Insurance Premium Index, the firm indicates that the average quote for annual comprehensive car insurance stood at just over £1,000, rising by some 7.2 per cent in the last quarter.

Meanwhile, growth of 8.9 per cent was seen in the typical quote for third party, fire and theft, with such a policy costing £1,252.

The study also revealed that 23 to 29-year-olds have seen their premiums rises by an average of 9.3 per cent, something that could have an impact on those searching for young drivers insurance.

On a regional basis, Anglia was the area to have noted the largest rise in the cost of such insurance, as AA Insurance director Simon Douglas notes that premium increases are likely to continue as 2010 progresses.

Earlier this month, Serena Cowdy pointed out in a lovemoney.com article that consumers should take the time to compare prices when renewing their insurance to help ensure they get a competitive deal.

By Joe Letts