AA has reported that premiums on home and car insurance are becoming increasingly expensive leading to greater competition between consumers.
According to AA's quarterly index, car insurance
and building premiums have increased by just over one per cent and third party, fire and theft insurance have been increased by over two per cent.
The insurance company says that increasing insurance prices are creating even more competition within the industry.
A spokesperson for AA said: "This suggests that competition is as strong as ever.
"We were seeing the gap between the highest and lowest premiums narrowing but new entrants and online offers have widened the gap again."
AA says that online banking is also causing greater competition in the industry, which is good news for the consumer.
The insurance company reported, that while insurance remains competitive despite the increase, young drivers are still disadvantaged when it comes to car insurance and inevitably end up paying more.
The cost of non-comprehensive insurance rose by two per cent in the last quarter while third party insurance has doubled since 1994.To read more about Home Insurance, click here.
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