Watch out for your car insurance premiums, AA and Sainsbury's Bank warn

05 May 2005 / by None
Major insurers AA and Sainsbury's Bank have both warned that motorists should keep an eye on their car insurance premiums as costs look set to rise.

Following two years of moderately low cover costs, both AA and Sainsbury's Bank have indicated that some drivers could see their premiums increase.

According to Sainsbury's Bank, more than one in three drivers have seen their car insurance premiums rise in the last few months.

"Some insurers entice motorists to take out their cover by offering very competitive premiums and then increase them substantially when it is time for the customer to renew their policy - even though their circumstances have not changed," warned Joanne Mallon, Sainsbury's Bank car insurance manager.

The AA has echoed this concern, suggesting that recent discounts touted by some insurers may be about to come to an end.

Kevin Sinclair, director of AA Insurance, said that "premiums may have bottomed out" and costs are about to rise.

Mr Sinclair explained: "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."

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