Car insurance premiums still falling, says AA

24 May 2005 / by None
AA Insurance is claiming that car insurance premiums have fallen over the past year, and are continuing to do so.

The insurer's British Insurance Premium Index reveals that typical comprehensive car insurance premiums fell by 3.3 per cent over the past year, and by 0.7 per cent over the first quarter of 2005.

However, the managing director of AA Insurance, Kevin Sinclair, said that, with claims costs continuing to rise, premiums could be set to increase in the near future.

"Claims costs continue to rise and with low inflation, and thus low investment income, premiums will need to go up if customers are not to be faced with double-digit increases in the future," Mr Sinclair stated.

"Brokers such as the AA will play a critical role in helping to steer customers through the maze of costs and cover options available."

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