posted 4 years ago

Car Insurance soars to all time high

It has been reported that the cost of car insurance has soared to an average of more than £1000 per year and drivers living in Greater Manchester and Liverpool are the hardest hit as insurers raise prices

It has been reported that the cost of car insurance has soared to an average of more than £1000 per year and drivers living in Greater Manchester and Liverpool are the hardest hit as insurers raise prices. Greater Manchester and Liverpool were the most expensive regions for buying policies, with average quotes of £1,648.

Simon Douglas, director of AA Insurance, said the market was "in turmoil". He said "significant inroads" were being made to tackle fraudulent claims such as "crash for cash", although insurers were still handling "excessive" numbers of whiplash claims, which push up premiums.

Mr Douglas said "we expect the industry eventually to have routine access to DVLA data and the sooner this happens the better. It will allow fraudulent applications to be weeded out. Insurance companies are already exchanging information about people who appear to be manipulating data in order to cut the price quoted."

Young men drivers aged 17 to 22 are hit with the highest premiums at £2,792, premiums also increased for women in this age group to an average of £1,995.

Scotland remains the cheapest region to buy car insurance, with an average lowest quote of £727.