Stable car insurance premiums
Wed, 20 Apr 2005
Car insurance premiums have remained stable, according to the AA's latest quarterly British Insurance Premium Index.
The index discovered that the average comprehensive car insurance premium quoted fell by £5 to £750 over the past quarter, whilst the average quotation for third party, fire and theft cover fell - although by just 0.2 per cent.
"This suggests that the heavy discounting we have seen over the past couple of years may be coming to an end and that premiums may have bottomed out," said Kevin Sinclair, director of AA Insurance.
However, claims inflation is continuing to rise by around one to two per cent each quarter, meaning that insurers may not be able to sustain low premiums over the long-term.
Mr Sinclair warned: "What we need to avoid at all costs is a sudden leap in premiums which has happened in the past - that would not be in the interests of either customers or the industry."
© DeHavilland Information Services plc
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