Car insurance premiums 'will rise again'
Published On 20 June 2007
Car insurance premiums look set to rise again in the future, but consumers can still get a good deal if they are prepared to search for bargains, an industry expert has said.The AA's British Insurance Premium Index showed that typical car insurance premiums increased by 4.35 per cent in the final quarter of 2006. In the first three months of the year, premium levels remained relatively static, levelling out at £802 for fully comprehensive cover.
However, Ian Crowder, the public relations manager at the company, revealed that it is likely premiums will increase again in the near future.
"We do a quarterly survey of insurance premiums, and last year insurance premiums rose by an average of about six per cent. In the first quarter of this year they were predicted to continue to rise – but they flattened. [But] we think they will rise again," he explained.
In general, Mr Crowder said that the trend in car insurance premiums would be upwards in the coming months.
Despite this, Mr Crowder pointed out: "For all the upward pressure on insurance premiums, there's always going to be a new provider coming in, trying to get a market share and offering big discounts.
"For the savvy insurance buyer, there is always a provider willing to offer low premiums to get your business."
