The Money Stop

Comprehensive motor insurance premiums are at their highest level for two years.

Figures from Experian show that premiums in the direct market peaked in May, sitting 7.9 per cent higher than they were in the same month in 2006.

Experian has developed a Motor Insurance Benchmark to accurately measure insurance premium movements and this shows that the current average in the direct market is £560.

The intermediary market also saw the average premium rise to £529, the highest level for 11 months.

“The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market,” said David Murby from Experian.

“Traditionally, premiums in the intermediary market have been higher, but after peaking in February 2006 [reaching £557], they started falling significantly. They passed each other in July 2006, when intermediary premiums were at their lowest.

“The whole motor insurance industry is going through a period of transition and it is not as clear-cut as it was 15 years ago,” he added.

At present, it would seem that people looking for motor insurance are better off going through an intermediary but buyers should always shop around for the best deal and remember that things can change very quickly.

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