Car Insurance Back On The Up

After a brief fall in the costs of car insurance premiums in the first quarter of 2008, the AA has warned vehicle owners that the costs of cover are back on the ascent.

The group’s British Insurance Premium Index has indicated that in the three months up to June of this year, consumers saw an average of 20 pounds added to their comprehensive motor policy. It noted that annual costs for this kind of cover now stand at more than 700 pounds. Younger drivers were particularly hard hit as they are statistically more likely to make a claim than their elder counterparts. For a young car-owner looking for third-party, fire and theft cover, the average quote they can expect to receive now stands at 884 pounds, a rise of 45 pounds when compared with the first-quarter statistics.

Commenting on the findings, Simon Douglas, director of AA Insurance, said: “Car insurance costs are spiralling. While the number of casualties on Britain’s roads is falling, the cost of accidents is rising and young drivers are taking an increasing share of the toll. Insurers are also concerned about rising legal costs and personal injury claims and I expect the upward trend in premiums to continue. These findings are not good news for those with third party, fire and theft insurance, typically young drivers struggling to pay their first insurance premiums.

However, he added: “Young men aged 21 or under are ten times more likely to be killed or seriously injured on our roads than those aged 35 or over.”

For those who are looking to get on the road but are struggling to save up funds, taking out a personal loan may prove an effective course of action. Applying for this type of loan may enable people to cover the costs of a vehicle while still having enough money to avoid scrimping on cover. Such a loan could also help pay for additional driver training to reduce the likelihood of being responsible for an accident.

Indeed, Mr Douglas noted that pursuing methods of reducing the risk young drivers pose is essential, not just for road safety but for enabling this group to get cheaper quotes as well.

The AA also warned that the era of cheap home cover may soon be over too, although it recorded a modest rise in the overall costs of premiums. However, its Shoparound Index - which measures the average of the lowest three quotes returned for individual risks included in the main index - showed that there was a 22 per cent increase in these figures when compared to the previous year’s numbers. Since the floods in 2007, the average Shoparound premium quoted increased from 103 pounds and 60 pence to 16 pounds and 29 pence.

For those finding it difficult to take out cover for possessions and property, a low-rate loan may be an attractive option. Taking out this type of loan may also be of use to people who currently have no buildings insurance. Earlier this year, Sainsbury’s Home Insurance warned that as many as 1.78 million Britons currently lack protection for their home.

Loan Arrangers providing you with breaking personal loans news.