Car and home insurance get more expensive
Published On 9 October 2007
Typical premiums for both car and home insurance increased in the last quarter, a new study indicates.The AA's British Insurance Premium Index shows that the average quoted premium for home buildings insurance jumped three per cent over the three-month period. Home contents cover also increased - rising two per cent.
Fully comprehensive car insurance costs increased by one per cent and third party, fire and theft premiums rose.
According to the AA, the increases in home insurance premiums can be put down to the heavy rain over the summer.
"We now see the result of that devastation reflected in premiums as insurers meet the cost of drying out and repairing homes as well as temporary re-housing of families while their homes were made habitable once again," explained John Close, insurer relations director at AA Insurance.
"Some predictions that premiums would rise by 15 per cent were overly pessimistic and, although I believe premiums will continue to rise as insurers dip into their reserves, I expect competitive pressure will keep increases affordable."
He added that the one positive outcome of the summer flooding was that it seems to have encouraged people who were previously uninsured to consider taking out cover.
Recently, Sainsbury's Bank found that one in five motorists opted for the first quote they obtained and that they were potentially missing out on savings by not shopping around.
