AA: Car insurance premiums likely to rise

Motorists must be prepared for car insurance premiums to go higher sooner rather than later, according to the Automobile Association. However, says the AA’s public relations manager, it can still pay to look for the best deal as new providers enter the market and offer discounts in an effort to gain customers. While the AA;s British Insurance Premium Index showed that comprehensive cover held steady at £802 in the first quarter of this year, premiums rose by an average of 6 percent in 2006, with 4.35 percent of the increase coming in the last quarter of last year.

One thing motorists must not do to avoid their premiums rising is not try to illegally avoid points on their driver’s license. A separate study by Churchill Insurance found that 9 percent of couples thought it was fine to swap points so long as they share the same car insurance policy, and ten percent said they would be willing to ask their partner to take the blame if they were caught driving without insurance. Twenty-three percent of UK drivers would ask their partners to take their points for an offense such as speeding, and even more, 29 percent, would accept those points from a spouse if they thought it would mean avoiding higher insurance premiums. A spokesperson for Churchill warned that such activities are illegal and can result in prosecution.

Which, of course, will not help keep one’s insurance premiums lower.

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