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Cheap motor insurance news
18/04/2007
UK motorists enjoy cheaper car insurance quotes
The cost of car insurance quotes for UK motorists has fallen slightly since the end of 2006, according to AA Insurance.
December 2006 saw the average driver's motor insurance premium costing £806 but this has fallen by £4 to £802 at the beginning of April 2007.
This fall has come as an unexpected surprise for motorists, who had seen an increase in the cost of car insurance quotes in the tail end of 2006.
The managing director of AA Insurance explained that the decrease had not been forecast but still believes it is a temporary fall.
He commented: "I had expected premiums to continue rising and I think the underlying pressure is still upward.
"Most insurers continued to apply small increases in an effort to close the gap between premium income and claims costs.
"Some distributors - especially online providers - are taking advantage of the rising trend to offer big introductory discounts and that has checked premium averages. But there is a limit to how long they can hold back the tide."
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