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Motorists suffer penalties
Insurance Prenium Rises - Manufactuers increase prices.
Car insurance premiums are rising at their fastest rate for nearly a decade, according to the AA index. Between April and June, the average premium for an annual comprehensive policy increased by 3.5% to £778. Over 12 months to the end of June, premiums rose by more than 11%.
There are also concerns over rising "cash-for-crash" fraud incidents, where drivers deliberately crash to benefit from insurance payouts. Estimates suggest insurers typically add about £44 to every car insurance policy to cover this type of fraud.
We have some more information on the cash for crash fraud and tips on how to avoid being a victim.
Simon Douglas at AA Insurance said: “Underlying premiums are rising more steeply than they have since 2000 because of rising costs.
It is also reported fears that car manufacturers are pushing prices on the back of the scappage scheme with the Which Car buyers’ guide revealing that manufacturers have increased the price of new cars by as much as 14%.
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