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29/09/2011

Premium PriceThe Office of Fair Trading has announced that it is set to investigate the thorny issue that is car insurance, particularly in light of research by the AA.

One startling statistic is that, according to the AA, the average insurance premium for comprehensive cover has risen by a massive 40% in the 12 months to March.

As expected, it's the younger drivers who are being hit the hardest, with the 17-22 demographic having to cough up an average of £2,431 per year – an eye-watering rise of 64% in the same time frame.

The Association of British Insurers says that prices are rising due to higher claim costs in much the same way as higher supply costs cause energy companies to raise prices, but the OFT says that it has identified several areas that cause concern for competition and consumer issues, such as replacement vehicle policy and additional products sold by insurance companies.

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