AA News Update: Insurance at All-Time Low
AA news update: it has been revealed, in research conducted by The AA, that the cost of motor insurance has dropped by the biggest percentage since 1994.
Recent figures released by the AA (Automobile association) have revealed that there has been the largest drop in the cost of motor insurance, since the index measuring motor insurance premium costs was set up in 1994. Latest figures represented a decrease in the cost of premiums in 2012 of almost 10% in the comprehensive insurance bracket and almost 5% in premiums for third party fire and theft insurance. Figures from April to July of this year show that comprehensive insurance had shown a further 3% reduction and the cost of third party insurance had gone down by just over another 2%.
Savings for drivers across all age groups was seen although those in their sixties enjoyed the cheapest annual premiums at an average of around £343 the AA reported. The youngest drivers on the road were still faced with on average a hefty premium of £1,210 for a year’s insurance but still benefit from a decrease on pervious years.
In the face of sharply rising fuel prices this news has been welcomed as a glimmer of comfort for the hard-pressed motorist. Premiums for motor insurance reached a peak when the gap between premiums received and claims paid out between 2009 and 2011 reached an all time high. At the height of the no win no fee culture and in the face of a proliferation of claims for whip lash injuries that drove up premiums for car insurance across the board. At one point the amount paid out to drivers for whiplash injuries topped £1 billion for the first time.
The AA reported that this very welcome reduction in insurance premiums was due in part to the fact that measures to detect fraud had improved considerably. As well as greater success in detecting fraudulent claims competition in this sector of the insurance market has also led to lower premiums for motorists.
Speaking to The Telegraph Simon Douglas who is the Insurance Director for the AA has been reported as saying that it is in no small part due to the reigning in of the ‘no win no fee’ claim firms that has allowed motor insurance premiums to fall. He also stated that he was glad that the UK seemed set to shake off its reputation as being the ‘Whiplash claim capital of Europe’
If you would like information on insurance premiums or to arrange breakdown cover for your vehicle, you can call AA customer service department on Mon–Fri 8am–8pm, Sat 9am–5pm, Sun 10am–2pm on 0844 335 0826.
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