Car insurance news
Latest car insurance figures released
According to recent figures, car insurance premiums remained static over the last three months of 2005, despite slight increases in the previous quarter. AA British Insurance Premium Index figures also reveal that the cost of comprehensive car insurance has risen marginally in the past year, but still remains lower than in April 2003.
New car insurance brands operating exclusively on the internet have been hailed as the reason for keeping costs relatively steady as they have introduced an extra degree of competitiveness into the market.
Although this may seem like good news customers looking for cheap car insurance, experts predict that prices could make a sudden increase late in 2006 when insurers begin find it increasingly difficult to cover rising claims costs, especially for personal injury claims.
In contrast to the minimal rise of comprehensive car insurance prices, a 3% rise in the cost of third party, fire and theft insurance has been reported in the last twelve months, resulting in the highest prices since records first began in 1994.
Industry officials have blamed the hike in costs on the fact that third party car insurance is mainly bought by young drivers, who, unluckily for them and their premiums, are the most likely to be involved in an accident.