AA Study Shows Jacking Up Of Car Insurance Premiums
17 January 2007 / by None
Car insurance premiums are now more expensive than they have ever been, AA Car Insurance has revealed.
Over the course of the final quarter of 2006, the average premium for comprehensive car insurance cover rose by 4.35 per cent to reach £805.70, the study finds.
That is almost twice the average price quoted in July 1994 and more than £25 more expensive than the previous highest average quoted premium, £777.57, recorded in January 2004.
The cost of car insurance has also risen much more steeply than home premium prices, which rose only slightly over the quarter – 1.26 per cent for buildings cover and a fall of 0.5 per cent for the cost of contents cover.
Kevin Sinclair, AA Insurance managing director, noted that the rise in the cost of premiums directly reflects a six per cent rise in the cost of covering claims and anticipated that the trend of rising car insurance prices would continue.
Towards the close of 2006, Norwich Union hiked car insurance premiums by an average of 16 per cent, and Royal Bank of Scotland Insurance, which includes the Churchill and Privilege brands, followed suit by hiking premiums by five per cent in December.