After three years without movement, car insurance prices are now starting to increase – according to a survey by the AA.
The AA carried out a survey that looks at all the cheapest insurance plans that are currently available. The results showed that there has been a 5.2% increase over the last three months.
The largest rise for any age group was felt by people aged 23-29 – the prices went up by 6.2%. This represents an average premium of £683.
Janet Connor, managing director of AA Insurance said:
“Insurers have been releasing their reserves to maintain their competitive edge to the point where this is no longer sustainable – and we are seeing premiums beginning to rise once more,”
“The days of cheap car insurance premiums are over – price rises are inevitable.”
The average price of car insurance for all ages is now sitting at around the £550 mark.
The recent budget that was announced by George Osborne has laid out plans for a rise in insurance premium tax. The AA has predicted that this rise will add around £18 to the average annual cost of a fully comprehensive policy.
There has also been a rise in home and contents cover of around 1.3%. This represents the first increase in 3 years.
The average cost of a policy is now £61 and buildings premiums have gone up to £108.
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