Car insurance premiums on the rise
Published: 6 May 2009 By MoneyhighStreet Staff Leave a Comment
According to the AA, car insurance premiums are on the rise again.
The average car insurance premium was up 1.3% to £751.60 over the first 3 months of 2009.
This is based on a sample of 1,000 customers across over 80 car insurance providers.
Director of AA Insurance, Simon Douglas, said ‘Although 1.3% may not sound much, premiums fell during the same period in each of the past five years, so this increase is a significant indication that insurers are determined to address past underwriting losses this year.’
Car insurance premiums do usually fall in the first 3 months of the year as it is a busy renewal time, firing up competition amongst the insurance providers to keep premiums low.
This year seems to be different. Fraud, personal injury claims and legal expenses are all increasing costs.
Fraud alone is significantly on the rise, up 30% as reported recently by the ABI (Association of British Insurers).
The AA expects a rise of around 11% on car insurance premiums during 2009.
Getting the best price car insurance, with the cover you need, is critical.
With so many providers, car insurance comparison sites, such as Confused.com, Gocompare.com and Comparethemarket can be a great help.