A recent study will be released within this week. According to the car insurance company that conducted the poll, around £ 1000 are being paid annually in accordance with motor insurance premiums.

A lot of motorists prefer getting a comprehensive insurance coverage because of its broader scope. However, as revealed in the survey, comprehensive insurance packages have increased by almost 16 % during the previous year alone. Because of this 15.3 % increase, comprehensive insurance coverage polices cost almost £ 1000 annually. This increase is the highest ever recorded increase since 1994. All figures and statements have been taken from AA Car Insurance’s British Insurance Premium Index.

The £ 971 figure has been based on the average of the three cheapest rates available on the market for a comprehensive coverage policy. Last week, the Transport Select Committee has stated that the most plausible cause for these increases is the rise in whiplash insurance claims in the country.

In addition to this, certain members of parliament have stated that it is hard to diagnose what exactly are the causes of continuous increases in car insurance premiums. However, the report also revealed that ‘askew practices’ like passing on customer details to other parties is another reason for insurance increases.

Late last year, the MP of Blackburn released scathing facts regarding the payment of personal injury lawyers for customer details. However, with the release of this information, a ban was also released to stop this perverse practice.

As stated in the recent survey, “Car insurance providers, solicitors and insurance claim management companies have all taken part in increasing the cost of car insurance premiums. This is because they have encouraged people caught up in car accidents to immediately make a claim despite the fact that they were just in small-scale accidents.”

“Motorists should not be forced into making legal actions by personal injury lawyers.”

According to the survey, whiplash claims must be given tougher criteria by the Government for approval. If this is done, reducing car insurance costs just might be taken into effect.

Nick Starling of the Association of British Insurers (ABI) said that, “The main reason for these increases in ca insurance costs are the rising personal injury claims. This is why referral fees of personal injury lawyers must be placed under a total ban. If referral payments are finally made illegal, motorists just might see a reduction in their car insurance costs.”

“Motorists are tired of getting numerous text messages, voice mails and calls from personal injury lawyers forcing them to take legal action. Also, they are fed up with enduring exorbitant car insurance premiums just because of these ambulance-chasers and claim management firms.”

In the third quarter of this year, car insurance premiums may have lowered slightly but they still remain at a soaring high amount. AA Car Insurance Company has mentioned that their research shows that the average amount for an annual comprehensive car insurance policy has fallen by £ 2 – £ 921. This slight decrease occurred in the third quarter of this year. British motorists have staggered by the amazingly high cost of insurance for the past two years. In addition to this, increasing costs for auto repair have resulted in another reason for car insurance companies to demand more money from motorists. Within the period of one year starting from the first quarter of 2010 to first quarter of this year, car insurance premiums have shown an increase of up to 40 %. However, this particular increase has shown a slight decline. A decrease in car insurance premiums have been stated to be at 16 % and this has given British motorists some hope that perhaps the worst increases are now at an end.

“Within the past two years, insurers have seen the biggest and highest increases in car insurance premiums while these certain motorists have been struggling to diminish the broad gap between claims and premium income,” said the director of AA Car Insurance Company, Simon Douglas.

He also added that, “Although these sky-high costs have reached a historical high, in 2009 each £100 received in the form of a premium, £ 123 was being paid out in claims and other coverage’s. Something really had to change.”

“Now, however, the broad gap has sufficiently diminished and it has allowed insurers to start becoming more competitive in their pricing and marketing”.

On another note, Simon Douglas has also seen the possibility of the respite being short-lived. This is mainly due to the fact that there are still some inflationary pressures evident in the insurance industry.

“I believe that the evident decreases are just a breather rather than the beginnings of a trend. Car insurance premiums are most likely to backslide next year, yet they might not prove to be as worse as the previous increases.”

Certain statistics and figures have been gathered from the motor association and car insurers and it has been found that the average cost for building car insurance have risen by approximately 14 % in the last year. This would mean that car insurance has been increasing by around £ 150 per year. Also, the cost for a content cover is also up. An average price increase for this particular cover had risen by almost £ 80 or 6 % during the last 12 months.