AA: premiums not yet hit by flooding
by Richard Kilner
Story link: AA: premiums not yet hit by flooding
The widely tipped surge in cost of car and home insurance premiums has yet to appear, according to the AA British Insurance Premium Index.
Car insurance premiums rose by 6% over the course of a year, but most recently have recorded a modest decline.
The present average cost of comprehensive car insurance is £682, £37 higher than this time in 2007, but £3 lower than the end of last year.
Buildings insurance remained unchanged in cost, with home contents insurance increasing by just 1%.
Combined buildings and home contents insurance actually saw a small fall in premium cost.
AA Insurance’s chief executive officer, Andrew Strong, has said that he believes prices will continue to rise, though not by the extreme levels predicted in the aftermath of the summer floods.
Strong goes on to say that it is likely home insurers will want more information about flooding prevention measures taken by local councils before offering coverage, although existing insurers will continue to cover properties.
However, the continuing flood coverage offered by insurers is contingent upon the government providing adequate flood defences.