Car insurance hiked to an average of £1000 a year!
The cost of driving has been on the up since time began, but lately, it seems to be something of an unfunny joke. And the news that cost of car insurance has rocketed to an average of more than £1,000 a year, isn't making the joke any funnier.
The AA British insurance premium index found that the cheapest average premium for comprehensive cover, sold directly, went up 8.5% year-on-year to £1,034. Greater Manchester and Liverpool were the most expensive regions for buying policies, with average quotes of £1,648.
The study claims that some insurance companies are putting their prices up in a bid to tackle “crash for cash” scams and “excessive” numbers of whiplash claims. Simon Douglas, director of AA Insurance, said the market was "in turmoil", adding that "significant inroads" were being made to tackle fraudulent claims.
"We expect the industry eventually to have routine access to DVLA data and the sooner this happens the better," Mr Douglas said. "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."