The cost of the average car insurance premium is now at a record high, a report released today shows.
Over the past three months, the average cost of an annual comprehensive car insurance policy has gone up to £822 – an increase of more then 2.5 per cent, according to the AA British Insurance Premium Index.
When the index was first published 13 years ago, the average price of such a policy was exactly half what it is today.
Earlier this year, the index recorded a slight dip in the price of premiums, but this has since been reversed and regained the momentum that saw prices increase around six per cent in 2006.
“There is still a large gap between premium income and the cost of claims so I’m not surprised to see the generally upward trend of the previous year resuming. I think this trend is likely to continue,” says Kevin Sinclair, managing director of AA Insurance.
In related news, British consumers are spending record amounts of money using their credit and debit cards, a new report by UK payments association Apacs claims.
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