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Car insurance 'is getting more expensive as the number of claims goes up'

By Tom Farley, Wed 27 Aug 2008 - Published in Car Insurance

The rising number of personal claims being made in the UK is pushing up the cost of car insurance, the Association of British Insurers claims.

Spokesperson Malcolm Tarling said insurance fraud and uninsured motorists were also factors which were forcing the price of premiums up.

However, he added there were deals to be had for motorists who were prepared to compare the offers available.

Mr Tarling stated: "Motor insurance always has been and remains a very competitive market and people can and should shop around to get the best rates."

These comments were made after research from Sainsbury's bank revealed that between July 2007 and June 2008 the average car insurance premium had risen by 5.8 per cent.

In June 2008 the average car insurance premium was £514.36, up from £486.13 in July 2007.

The AA British Insurance Premium Index also shows the cost of insurance premiums is on the rise.

During the second quarter of this year, the average cost of comprehensive car insurance rose by £20 to over £700.