AA figures reveal 4.8% increase for 17 to 22-year-old drivers
Premiums for women drivers aged between 17 and 22 rose 4.8% for the first three months of this year, according to the latest figures from the AA.
The AA’s Shoparound Index also revealed that premiums climbed 1.6% for those aged 23 to 29 during the same period.
But the index overall fell 1.1% quarter-on-quarter as insurers start to increase prices for women prior to the “gender neutral” ruling by Brussels later this year.
The drop represented the first significant decline in motor insurance premiums in three years, with men in their 50s enjoying the biggest reduction of 7.7% in the first quarter.
Despite premiums rising 7.7% across the market on a year-on-year basis, that was significantly less than last year’s 40% increase. But the AA warned that the recent fall in rates was unlikely to be sustained.
The AA’s director of insurance Simon Douglas said: “My fear is that if prices do continue to drop, we’ll see a repeat of 2009, when industry losses led to premiums suddenly rocketing up following a long period of little movement.”
The AA said: “While a few insurers are heavily discounting to attract new business, others have continued to increase premiums.”
The premium falls come after MPs spoke out about the rising number of personal injury claims, which the industry argues is a key reason why rates rose sharply over several months.
David Cameron, the prime minister, has vowed to clamp down on the ‘compensation culture’ affecting the industry and plans to extend a scheme capping legal fees.
Insurers have also called on the government to act against the risks involved in insuring young drivers by setting a zero-alcohol limit and imposing a tougher learning regime.
No comments yet