Car insurance premiums show unexpected first-quarter rise
The AA’s latest British Insurance Premium Index shows a 1.3% rise in the average quoted premium for annual comprehensive car insurance over the first quarter of 2009.
Notably, premiums tend to fall during the first three months of the year as most car insurance renewals take place during this period and competition is therefore strong.
The index, which is based on data from over 80 car insurers, produced an average premium of £751.60.
However, the Shoparound index, which gives an average of the lowest three premiums available and is therefore closer to the amount motorists actually pay, rose by just under 1% to £504.38.
AA Insurance director, Simon Douglas, comments: “Although 1.3% may not sound much, premiums fell during the same period in each of the past five years, so this increase is a significant indication that insurers are determined to address past underwriting losses this year, as we predicted last year.”
In addition to falling investment income, Mr Douglas points out that insurers have been facing increased costs in relation to theft, fraud, personal injury claims and legal expenses.
Category: AA Insurance News, Car Insurance News, Insurance News
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