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Daily Insurance Industry News
Monday 16th of July 2018
April 23, 2010

AA British Insurance Premium Index reports Q1 news

by Richard Kilner

Story link: AA British Insurance Premium Index reports Q1 news

AA British Insurance Premium Index reports Q1 news

The AA British Insurance Premium Index has found that the surge in car insurance premiums that bedevilled 2009 came to an abrupt halt in the first quarter of 2010.

The Index tracks home and car insurance every quarter and discovered a 3.2% decline in the average premium of a comprehensive car insurance policy.

However, the lowest premium price for such a policy did actually increase, as did the average offerings from price comparison websites.

Unfortunately the AA’s analysts have concluded that the move is a pause in the upward trend rather than a reversal.

Over the last 12 months the average quoted premiums for comprehensive car insurance has risen by 13.4%.

Earlier this week swiftcover.com reported that multi-car policies could actually cost motorists more than having multiple vehicles covered separately by single-car insurance policies.

AA Insurance’s Director Simon Douglas has expressed surprise at the unexpected halt in rising premiums, but has also pointed out that such pauses are not uncommon in the first quarter due to greater competition at this time of the year.

Douglas went on to forecast a resumption of rapid rises in later quarters this year.

The AA British Insurance Premium Index also found that in Q1 home buildings insurance premiums continued to rise, up 1.8%, but that home contents insurance fell by 2.6%.

However, buying both policies together rose (in terms of premiums) by 3.4%, suggesting that multiple discount offers are becoming less common.

There have been a number of high profile and damaging weather events, Douglas stated, such as storms and flash flooding that have affected the market.

However, despite this there is fluidity in home insurance and Douglas has argued that it remains very good value for money.

 

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