Car insurance premiums experience unexpected fall

It has been reported by a motoring industry group that car insurance premiums have experienced an unexpected fall, although this is said to be a short term reduction, with prices expected to increase again. The data was released by the motoring group the AA, which claims that in the first three months of this year car insurance premiums fell by 3.2 percent.

The fall in car insurance premiums was said to be a very unexpected one, particularly given that over the course of last year car insurance prices increased by 18.7 percent in total, resulting in further financial misery for the many drivers who were already experiencing problems due to other motoring costs. The fall means that the average cost of full comprehensive insurance is now £968.

However, whilst the temporary respite may come as good news to driver, particularly given the soaring price of petrol and diesel at the pumps, the lower prices are not expected to last. The report claims that over the rest of this year drivers are set to be hit with rising insurance premiums once again, and this is likely to continue for the foreseeable future.

It is thought that insurance companies at the more expensive end of the market have been reining in their prices, and this is what has caused the temporary drop in premiums seen during the first quarter of this year. However, the rest of the year will see insurance premiums increase once again, causing more financial problems for motorists.

Those that feel that they are paying over the odds for their cover are advised to shop around and compare prices in order to get a better deal. It is also worth contacting the current insurance company as the firm may be prepared to do a better deal if they think that the customer is going to move elsewhere.

Tags: car insurance premiums, driver, Insurance, finance, insurance premiums

Elderly women suffer most with car insurance costs

According to a recent report the demographic group that suffers most when it comes to the cost of car insurance is elderly women. Data from the insurance industry, which was recently released, has shown that from an insurance point of view elderly women are considered more dangerous behind the wheel than young men, and the higher risk is reflected in the cost of premiums charged to older female drivers. Read more

Tags: car insurance, insurance premiums, finance, Insurance, insurance point of view elderly women

Car insurance increases

Car insurance premiums are higher than ever before, according to the AA’s British Insurance Premium Index.

However, home and contents insurance premiums have fallen in the past quarter.

AA says that the average car insurance premium is now £822, a rise of 2.5 per cent in the last three months.

The firm points out that this is more than double the amount quoted in the first ever index back in July 1994.

Despite this, home and contents insurance premiums have fallen slightly in the same period of time.

Buildings cover is down almost two per cent, with the average quote being £207, while contents insurance has fallen by a little over one per cent to £147.

“Home insurance represents particularly good value having changed little over the past decade and while the trend of car insurance is firmly upward, there are still deals to be had,” said Kevin Sinclair, managing director of AA Insurance.

“Things have never been better for customers in terms of choice but make sure you’re comparing like for like and not just price for price.”

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Small drop in car insurance premiums

Despite a small dip in the last quarter, car insurance premiums remain high, new research shows.

Drivers taking out comprehensive insurance faced an average annual bill of £802, according to the AA’s benchmark British Insurance Premium Index.

Although this represents a £4 dip in yearly costs from the previous figures, it was falling from an all-time high after prices rocketed 4.35 per cent in the three months to the end of 2006.

Commenting on the results, Kevin Sinclair, managing director of AA Insurance, expressed surprise that premiums had dropped, saying: “I had expected premiums to continue rising and I think the underlying pressure is still upward.

“Most insurers continued to apply small increases in an effort to close the gap between premium income and claims costs.”

Third-party, fire and theft (TPFT) insurance saw a slightly higher drop in annual premiums to £993 at the start of the year, equivalent to a £6 saving.

But Mr Sinclair also doubted whether this downward trend would continue as most TPFT cover is bought by young people, who represent a five-time greater risk to insurers due to the higher accident rate among people under 21.

Tags: effort, insurance premiums, fire, drivers, previous figures, premium, Business and Economy, Mr Sinclair