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Warning over car insurance rises

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Motoring could become unaffordable for many as a result of the possible rises in the cost of insurance, an accountancy firm has warned.

According to Mazars, the motoring premium for a young adult is expected to go up from £2,400 a year to £3,600 over the next few months, which means a 50% increase.

Those living in rural areas will be the worst hit by the rises in the car insurance premiums, the group said.

The hike could lead to more young people driving uninsured or providing wrong information to reduce the cost of insurance, Mazars warned.

The rises may also prompt young drivers to abandon their cars and switch to motorcycles where fatality rates are much higher, the company said.

"We are already seeing younger adults are being priced out of car ownership and cannot afford it, and this will hit even harder over the next year as a typical premium for a young adult rises from £2,400 currently to over £3,600," said Craig Scarr, an insurance industry partner at Mazars.

He suggested: "The insurance industry needs to look at innovative ways to allow young drivers to get affordable insurance, while penalising boy-racers."

© Press Association 2011