Car insurance premiums increase
Published On 29 June 2007
The average cost of comprehensive motor insurance is at record levels, new research suggests.Data gathered by Experian shows that the typical quote for private comprehensive motor insurance increased by 7.9 per cent in May 2007 compared to the same period in 2006. Premiums rose from an average of £519 to £560.
Similarly, the premium of car insurance arranged through an intermediary also increased - reaching £529.
However, this is still below the high the intermediary market saw in May 2006. On average, car insurance organised by a broker is 5.5 per cent less than if sorted out privately.
"The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market," explained David Murby, the managing director of Experian's insurance services.
"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."
"Competition is aggressive and with technological advances and changing consumer needs, the industry is unlikely to settle back into a straightforward situation."
A recent report from Alliance & Leicester showed that people were increasingly using bank loans to finance the purchase of cars.
