Younger travellers are also noticing an increase in the cost of travel insurance policies, however the rise is expected to be in the region of less than 9% which is significantly less than the 121% increase effecting the cost of cover for some OAPs.

The hike in the price of travel insurance for older people has caused concern amongst charities and consumer groups who fear that elderly travellers may be priced out of the insurance market which could lead these people to travelling without any type of cover.

The rising cost of travel insurance may push over 65’s towards taking out the cheapest possible option for insurance, however this could leave them open to problems if the policy doesn’t offer adequate cover for their needs. In some cases, experts believe that the sudden hike in holiday insurance premiums will deter older people from travelling abroad altogether.

In their defence, insurance companies say the premium cost reflects the increasing claims experienced for specific groups and that the price of travel insurance takes into account each travellers risk factor, which in many cases, means older travellers are placed in a high risk category due to the increased risk of health problems.

At present, homes in flood risk areas are protected thanks to an agreement known as the Statement of Principles between the government and the insurance companies. This guarantees insurance cover for all properties regardless of whether they are at increased risk of flood damage.

The term was put in place to allow the government time to improve flood defences, however the agreement is due to come to an end on July 1^st 2013, after which the insurance companies will no longer be obliged to offer policies to these types of high risk homes. At present, there are no plans to extend the current agreement.

According to the recent research conducted by the Association of British Insurers, approximately 200,000 homes are at risk of flooding with property in Boston and Skegness found to be at highest risk in Britain followed by homes in the Vale of Clwyd, Folkestone, Hyde and Windsor.

The ABI is calling for the government to intervene and take some responsibility for the funding of insurance for the high flood risk properties, while environment agencies are calling for more action to be taken to improve the flood defences, however progress on this has been slow as there’s some discussion over which departments are responsible for funding these improvements.

At the top of the list for tips for cheaper car insurance is, shopping around. Comparing quotes from a range of providers, as opposed to just letting your current policy renew automatically, is the first piece of advice an insurance expert will give you. Head to an insurance price comparison website to compare a range of quotes in one go.

If you know your premium is coming up for renewal, try to save up so you can pay it off in one lump sum as paying off your premium month by month through a direct debit can add approximately 11% to the overall cost of your cover compared to paying outright at the start.

Increasing your voluntary excess is another way to help lower your insurance quote, however don’t be tempted to set your excess at too high a rate as if you are involved in an accident, this is the amount you will have to pay before your insurance covers the cost.

If you’re a young driver, consider adding an older driver to your policy as a named driver if they also use your car, or look into taking out a telematics insurance policy. These policies work by placing a box in the car which records data that is then used to calculate the cost of the driver’s policy. If you’re a careful driver and you don’t use your car at peak hours and rack up high mileage, you could benefit from lower premiums with these types of policies.

Follow our top tips to find the very best rates on annual car insurance.

Breaking down its findings, AA Insurance discovered that buildings insurance premiums rose by 3.1% from an average of £143 a year in 2010 to £156 in 2011, while contents insurance also went up, this time by slightly more than buildings cover, increasing by 4.4% to an average £80 a year in just the last three months of 2011.

An increase in the number of home insurance claims, coupled with an increase in crime levels, is believed to be responsible for driving the cost of home insurance upwards. The past two winters have also seen the insurance industry hit with a high level of claims for winter weather damage to property including burst pipes and caused by plummeting temperatures and storm damage and flooding, which has caused insurers to raise their premiums as a result.

The British Crime Survey also showed that crime levels have increased in England and Wales, with the rate for domestic burglaries in these areas up by 10% in the last 12 months to June 2011. Insurance experts believe the increase in the number of domestic burglaries is linked to the economic pressure much of the country is currently experiencing.

Often claims for whiplash injuries are not being contested by the insurance company as diagnosis of this type of injury can be subjective, the recent study by the MPs found, which deters insurers from fighting the claim as it is hard to defend this type of case.

While the MPs behind the study say they support justice, and those who have been seriously affected as a result of an accident that wasn’t their fault should not be put off seeking compensation. However there was concern that victims who are not seriously hurt or have suffered lasting injury, are being railroaded into making claims from cold calling personal injury companies who persuade them to pursue a claim.

The report from the transport select committee found that the spiralling number of uncontested whiplash claims in the UK is having a negative impact on the cost of car insurance, with premiums rising at a staggering rate in order to fund the claims for compensation. Curbing the number of whiplash claims, would help bring the cost of insurance back under control, it recommends.

Aston Midshires targeted young drivers in particular, offering competitive prices on insurance policies for new drivers and learner drivers. However there are fears that thousands of drivers on UK road could be driving without any form of insurance as the policies sold by Aston Midshires have been brought into question after 30 complaints were received from drivers who’d discovered their policies were not legitimate.

The Financial Services Authority, the police and Trading Standards are all reported to be carrying out investigations into the insurance provider. So far, the authorities have discovered that the company is linked to a foreign address, however Aston Midshires have most recently pulled down their website and also stopped answering phone calls.

When the authorities visited the building listed as the UK address for the insurance company in Leicestershire, the owners of the building said they had no record of the company ever operating from the address.

The consequences for drivers who have invalid policies with Aston Midshires is far reaching as not only are they not covered should they have an accident in their vehicle, but the consequences will affect the other drivers if they have the misfortune to be involved in an accident with a driver who doesn’t have valid insurance.

Hayley Fulton’s car insurance premium stood at £720 for the year prior to moving to a larger property in the same village of Highley in Shropshire with her family. However when the mother-of-two contacted her insurance company to change her home address, with a postcode that was one digit different to her former postcode, her new insurance premium was calculated at £1,600.

Recent Home Office statics revealed that there was a low level of crime throughout the Shropshire village, and no difference at all between the crime rates for both postcodes. However the insurance provider justified the increased premium by stating that the new postcode flagged up on their system as higher risk than the previous postcode Ms Fulton resided at.

Another reason for the increase in price of cover according to the 25-year-old’s insurer, was that the car was kept on the driveway of the family home at the previous address, but at the new home the car would be kept in a gated car park a few yards from the house.

Insurance companies use sophisticated systems to calculate insurance premiums that provide very detailed and specific information on a postcode including levels of fraud, crime and other factors that can affect the cost of a premium. In the case of Ms Fulton, the insurance provider found that the change of postcode and overnight location of the vehicle increased the risk factor of the policy, which resulted in a higher premium cost.

Scotland was hit the hardest by the extreme weather with high winds of 90mph reported, and this was certainly reflected in the claims figures issued by the AA for this part of the country with a 65% rise in the number of car insurance claims in the first five days of this month compared to the same time last January. Common claims according to the AA included accidents related to car doors with many policyholders reporting having their car doors ripped out of their hands by the strong winds.

Car insurance claims shoot up by 28% at start of 2012 Car insurance claims shot up by as much as 28% in the first 5 days of January 2012, car insurance provider the AA has reported. High winds and stormy weather conditions which affected the UK in the early part ofthe New Year have been blamed for the sharp rise in claims on motor insurance policies.Statistics show that as many as 5,600 car insurance claims in the early part of January acrossthe UK could be related to, or caused by, the stormy weather.

Scotland was hit the hardest by the extreme weather with high winds of 90mph reported,and this was certainly reflected in the claims figures issued by the AA for this part of thecountry with a 65% rise in the number of car insurance claims in the first five days of thismonth compared to the same time last January.

Common claims according to the AA included accidents related to car doors with manypolicyholders reporting having their car doors ripped out of their hands by the strong winds.This has resulted in claims for damage to car door hinges, also smashed windows and alsodamage to cars parked next to the vehicle.

Other claims reported to the AA arose as a result of items not being fixed down properlywith cars being damaged by flying trampolines, garden sheds wheelie bins and TV aerials.

The most common issues being reported to AA insurance include damage to roofs including falling roof tiles, to broken windows caused by falling trees, fallen guttering and damage to cars caused by flying debris.

The continued stormy weather conditions are also having a knock on affect on repair work as high winds in many regions of the UK make it too dangerous for maintenance workers to get onto roofs to repair tile damage for example. Home insurers are recommending policy holders get in touch with their insurance provider before carrying out any repairs as they may be able to arrange temporary repair work to tide the property over until the issue can be resolved properly.

While last winter saw a rise in the number of claims being made on home and car insurance policies due to the icy and snowy weather conditions which affected the UK, this winter high winds and storms are hitting the headlines as Brits bear the brunt of this extreme weather.

The AA say roofs and cars are coming out as the areas in which most calls are being received with an increase of 12 times the normal ratio to report damage relating to these two areas. Overall calls to the AA are up by 200% compared to the number of calls usually received at this same time in previous years.

Sainsbury’s Car Insurance discovered the high penalty for not having an updated photograph on a UK driving licence following a request made through the Freedom of Information Act. It’s reported that 1.6 million drivers could be at risk of receiving the fine at this time, while by the end of 2012, a further 2.9 million licences will be in need of renewal in order to fully abide by the licensing laws.

The DVLA charge £20 to have the photograph updated on each drivers licence however Sainsbury’s Car Insurance found that as many as 41% of UK drivers are now aware of the repercussions of not having an updated image on their licence after 10 years which means that millions of drivers could be putting themselves at risk of receiving the hefty fine.

Those with the old style paper drivers licences will be unaffected by the law, only those with the photograph licences which came into being in 1998 will need to ensure their photographs are updated every 10 years in order to avoid the £1,000 which can be enforced by the police under Section 99 of the Road Traffic act 1988.