Research from the AA shows that the cost for comprehensive motor coverage premiums is rising at its fastest rate ever, with a reported 5.6% jump within the first three months of the year to the end of September.
This is the largest increase since the group first started to monitor the insurance market back in 1994.
Additionally, the annual rate for the rise in coverage costs has also gone up by an astounding 14% which Simon Douglas the director of AA Insurance stated will lead to drivers seeing a sharp increase in the price they will have to pay when it comes time to renew annual premiums for car insurance.
Douglas went on to say that 89% of all insurers on the market have increased the price of premiums by a least five pounds in just the last quarter, with only 2.5% of insurances reduced.
The AA analysis takes into account quotes from 90 brokers and insurance companies over 1,000 consumer profiles, and found that rates rose from just £271 in 2008 up to £281 this year.
Even worse, the group warned consumers that in the future the prices of vehicle coverage premiums are expected to continue to rise, as car insurers are paying out more in claims in costs per premium received.
In order for car insurance companies to make a profit again, according to Douglas, current premiums would have to increase again by at least 20%, which is something that may occur soon given insurers have little choice.
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