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Average car insurance premium 'now over 1,000'

By Lucy Bower

26 July2021

The average cost of insuring your car on comprehensive cover rose to 1,034 by the end of this year's second quarter. This represents an 8.5% increase over 12 months, according to the most up to date figures from the AA British Insurance Premium Index.

The latest Shoparound Index from the AA indicates that male drivers between the ages of 17 and 22 have seen the biggest car insurance hike. Their premiums went up by 7.5% to 2,792 on average. Women of the same age saw an average increase of 6.5% to 1,995, but could see a further 25% rise in their premiums by the end of this year, when new legislation comes in to make the prices gender-neutral.

In Scotland you'll generally pay less to insure your car. The average there, based on a Shoparound quote, is 727. The Greater Manchester and Liverpool region is the most expensive, where car insurance will set you back 1,648 on average.

Simon Douglas, Director of AA Insurance, believes the car insurance industry is "in turmoil" as some insurers raise prices to tackle fraud whereas others lower prices to widen their customer base.

He goes on to say that there is still an "excessive" number of whiplash claims and that fraudulent "cash for crash" claims are pushing up the price of premiums. He highlights the problem of "ghost broking set-ups" selling invalid insurance policies and says that the industry is also tackling those who falsify information on their application to lower their premium.

Tags: car, car insurance, whiplash, premiums, AA, money, insurance policy

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