UK FACES CREEPING PREMIUMS
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| Article date: 11/10/2005 : 13:35:27 |
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Both car and home insurance premiums appear to be rising, according to new figures.
The AA's British Insurance Premium Index shows that the average premium quoted for comprehensive car insurance has risen over the past three months by just over one per cent to £765.46, while for those with third party, fire and theft insurance have faced an increase of two per cent.
Young drivers in particular appear to be suffering, with the cost of a non-comprehensive insurance policy rising by over two per cent for them over the past quarter.
"Third party cover is typically bought by inexperienced drivers insuring older cars," explained Kevin Sinclair from the AA.
"Young men particularly suffer high premiums, as they are the most likely to pay the penalty of an expensive crash. Many insurers choose not to quote for them."
Meanwhile, premium quotations for buildings have increased by just over one per cent this quarter to £205.17, while contents cover has risen by just over two per cent over this period.
Mr Sincair commented: "Quotations for buildings insurance rose by just £2.33 to £205.17, but remain less than when the AA Index started in 1994. Premium changes have been erratic but we could be seeing the start of a steady upward trend."
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