Car insurance premiums up, and down

04 July 2007 / by None
The price of the average car insurance premium is higher than at any time since 1994, at least according to AA Insurance.

Depending on who you listen to, a 2.5 per cent rise in the price of annual premiums over the past quarter has meant getting car insurance now costs the customer £822 on average.

And even the best value premiums on the market appear to be getting more expensive, with a 2.15 per cent rise in the value of the AA's 'shoparound' premium, calculated on the basis of the average cost of the lowest three premiums available.

However, a set of figures simultaneously released by insurancewide.com showed, conversely, a 4.6 per cent fall in the average car insurance premium between April and June 2007.

By factoring in direct insurers, the comparison site found that premiums fell to just £703 by June, said chief executive James Harrison.

Although it did not resolve the discrepancy in the findings of the AA and insurancewide.com, meanwhile, GoCompare.com advised customers to look for value for money rather than simply targeting low headline prices.

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