AA: Car insurance costs spiralling
by Kay Murchie
According to the AA’s quarterly British Insurance Premium Index, car insurance premiums are increasing again despite a brief respite.
The index established that in the three months to the end of June, over £20 has been added to the average premium quote for comprehensive insurance. The average cost of this type of insurance is now £700.
The hardest hit are young motorists who, on average, buy third party, fire and theft insurance. This group of people are the most likely to claim and since the last Index in March, over £45 has been added on to the average premium which takes the average quote to £884.
According to Simon Douglas of AA Insurance, car insurance costs are spiralling and he expects the increase to continue.
Furthermore, a year on from last summer’s floods, the index also discovered a modest £1 (0.5%) rise in the average quoted premium for buildings insurance, over the 3 months to the end of June.
The index has been tracking industry-wide car and home insurance premiums since 1994.
Price comparison website, gocompare.com, is recommending that consumers shop around for the best insurance deal.
Discuss this in the Finance Markets forums
Story link: AA: Car insurance costs spiralling
Add to Bookmarks:
Related financial stories to: AA: Car insurance costs spiralling
- Keep property insurance costs low
- Post Office: Insurance from mortgage lenders costs too much
- Motor insurance premiums on the increase
- Report: Some insurance premiums down slightly in quarter
- Norwich Union increasing home insurance premiums
- Advice on reducing car insurance premiums
- Reduce your car insurance
- Clean driving licence holders benefit when it comes to car insurance
- Debt spiralling out of control
- AA: Car insurance premiums likely to rise
Previous: « Nationwide cuts mortgage rates again
Next: B&B shareholders back £400m cash call »
Visited 1276 times, 9 so far today