Car insurance premiums have hit a bump in the road, staying static in the first quarter of the year, the AA has found, offering drivers a window of opportunity before they start to rise again.
The AA explained that the static premiums can be accounted for by seasonal trends – this is when car insurance providers up the ante in competing for business because this time of year traditionally sees the highest number of cars sold.
According to the latest AA British Insurance Premium Index, the average comprehensive car insurance quote fell 3.2 per cent to £968.26, but AA car insurance analysts believe this is temporary and expect the upward trend to resume for the remainder of the year.
The average quote for a third party, fire and theft car insurance policy – typically taken out by new motorists looking for young drivers' car insurance – fell by 4.5 per cent, to £1,196.24.
In the last 12 months, the average car insurance quote for comprehensive cover has risen by 13.4 per cent, while quotes for third party, fire and theft cover rose by 19 per cent.
Commenting on the findings, Simon Douglas, director of AA Insurance, said: "Most years we have seen insurers hold their premiums during the first quarter of the year, when there is greatest competition for business. It's when most cars are sold and historically, it's when most car policies are renewed.
"Last year, for the first time, premiums rose during the first quarter and I expected the same to happen this year. However, while many insurers have shown modest increases, the quarterly fall can be mainly attributed to a drop in some expensive broker rates bringing them more in line with the market average."
He warned motorists that the price hold is unlikely to last, as the same pressures as last year continue to weigh on providers, such as rising cases of fraud and personal injury claims, which both push up premiums.
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