Car insurance news
Cost of motor insurance quotes on the up
The AA British Insurance Premium Index has revealed that the price of a motor insurance quote has risen in the third quarter of 2006.
The average comprehensive car insurance policy will now cost £772.13, which stands at just over ten pounds more than three months ago.
However, it also found that there are more bargains around as the average "shop around" rate for a motor insurance quote fell by five pounds. The shop around rate is the average of the three cheapest car insurance quotes available.
The cost of a third party, fire and theft motor insurance quote continued is now an average of £998.21. This figure is thought to be so high because of the high number of young drivers who choose this kind of car insurance policy.
Finally, the statistics from the Index showed that the shop around rate for third party, fire and theft car insurance had fallen by just over 1%.
AA Insurance believes that these the rise in the cost of average motor insurance quotes is just the start of a long-term upward trend.
Kevin Sinclair, managing director of AA Insurance, commented: "It's long been clear that the increasing cost of meeting both accident damage and personal injury claims would eventually have to be absorbed by increased premiums.
"Two quarters' rise may not be a trend, but I believe average quoted premiums will continue to go up," he finished.