General
Car insurance prices driven back up
Wed, 13 Jul 2005
Car insurance premiums have been driven back up following a lengthy period of decreasing prices, according to new research.
Figures published by the AA suggest that the average premium for comprehensive car insurance rose to £757 during the second quarter of this year, returning to the level last seen in January 2003.
Registering an increase of about £7, the latest figures cancel out the £5 decrease that had been seen in the first quarter.
"Tough competition in the car insurance market has helped to keep the lid on premiums over the past couple of years, despite steadily rising claims costs," Kevin Sinclair, managing director of AA Insurance, told the Scotsman.
However, the insurance expert insisted that motorists, including young drivers, would still be able to benefit from competitive car insurance pricing.
"I think this modest rise is common sense for the industry and, I believe, will turn out to be the best solution for customers."
Mr Sinclair said that the risk of a significant hike in prices remains, but is looking increasingly unlikely.
© Adfero Ltd
