A new report has shown that the average car insurance premium increased by 5.24% in 2007.
Motorists aged 40 to 50 suffered the worst: their premiums increased an average of 7%, while those under 25 years of age increased 6.59%, compared to those over 65 who saw the lowest increase of 4 , 14%.
Men also continue to pay more for car insurance than women, with the index showing them an average of £ 535.35, compared to £ 435.38 for a woman.
Joanne Mallon, auto insurance manager, said “premiums continue to rise, which makes it even more important to compare competitive insurance prices.”
As prices continue to rise, another report has shown that the number of vehicles seized by the police nearly doubled in the space of a year. The total number rose from 78,000 in 2006 to 150,000 in 2007. Currently, up to 9,000 cars a month are uninsured and are being impounded or impounded, and the number is expected to rise to more than 100,000 a year.
There are an increasing number of high-end car seizures.
The sharp increase in captured motorists is due to the increased use of automatic license plate recognition (ANPR) cameras by the police.
Trucks equipped with ANPR technology can instantly detect any vehicle using the roads with no updated taxes, with each truck scanning up to 10,000 vehicles per day. Bethan Beasley, a member of DVLA’s wheel restraint unit, said: “We usually find that these vehicles have no insurance or MOT and the best thing to do is immobilize them or get them off the streets as soon as possible.”
Owners of clamped vehicles are subject to a £ 80 release fee, and seized vehicles that are not claimed after seven days could be crushed. In 2007, 40% of seized cars were not recovered.
There are several factors behind the continued increase in the prices of insurance premiums. The UK road safety record has steadily declined since 2001, with an inevitable impact on prices; however, the AA says that road safety trends are not solely responsible for the increases. New cars designed to deform on impact to protect passengers carry high repair costs, and the number of motorists willing to file personal injury claims for minor injuries is also increasing.
Despite the 5% increase, consumers willing to spend time searching for the best quote, comparing prices from a variety of insurers, can still save money. Some auto insurers offer steep discounts to customers as they plan to increase their market share.
