AA reports biggest rises ever

The latest benchmark AA British Insurance Premium Index shows the shoparound cost of comprehensive car insurance rose 39.3% to £792 over the past year, the biggest annual jump recorded by the Index.

Young drivers are being hit with the biggest premium increases, with the average cost of insurance up 51% for those aged between 17 and 22. After shopping around men of this age can now expect to pay an annual premium of around £2,500 and women £1,400.

Main Index findings for second quarter 2010

• Comprehensive cover up 11.7% (quarter) and 29.9% (12 months) to £1,249.71
• Third party, fire and theft (TPFT) cover up 9.8% (quarter) and 32.2% (12 months) to £1,246.41

Shoparound index findings (average of cheapest three quotes for each risk)

• Comprehensive cover up 11.5% (quarter) and 39.3% (12 months) to £791.82
• TPFT cover up 12.1% (quarter) and 54.6% (12 months) to £1,097.72

Main Comparison site price movements

• Comprehensive cover up 13.4% (quarter) to £888.84
• TPFT cover up 13.1% (quarter) to £909.02

Shoparound comparison site price movements

• Comprehensive cover up 10.3% to 592.08
• TPFT cover up 9.2% to 764.77

Home insurance

The AA also said the cost of home contents insurance saw the biggest jump over the past 12 months since the Index started in 1994.

Although premiums moved little over the third quarter of 2010, the year ending 30th September has seen the typical cost of a buildings policy rise by 7.5% to £133 and for contents, a record 14.9% to £73. The cost of a combined buildings and contents policy rose by 6.7% over the year to £194.