General insurance premiums rising
Published On 18 January 2008
Insurance premiums are experiencing a sharp rise, a new report has revealed.The latest AA British Insurance Premium Index released yesterday (January 17th) found that the premiums of both home and car insurance are increasing.
According to the report, the average quoted premium for home insurance leapt by three per cent over the last quarter. This represents the largest single quarterly increase recorded by the Index since it was launched in 1994.
It was also revealed that the average quoted premium for an annual comprehensive car insurance policy rose by more than one per cent.
During the same time period third-party, fire and theft (TPFT) car insurance increased by 3.5 per cent. This reflects a growing concern about the number of claims made by young drivers, as they typically take out this type of policy.
Commenting on the report, Hayley Parsons, managing director of insurance comparison website Gocompare.com, said: "Today's report probably sets the tone for the year ahead. Claims inflation has been running ahead of premium increases for the past couple of years, which is clearly an unsustainable stretch for insurers in the long term.
"These figures show that the elastic is beginning to fray and we should expect premiums to rise throughout 2008."
