The AA warn of car insurance price rises

According to the AA, the average price of car insurance in the UK is set to rise steadily over the course of 2015.

The price of car insurance had actually fallen by an average of 1% in the first quarter of this year.

The lowest prices that were on offer at the end of this period had fallen to £530.47. This was equal to a price drop of £5.58.

However, the AA did note that the average premium for drivers over the age of 60 had increased during that time.

It is predicted that these price rises are slowly going to spread to the other driving age groups as well. The managing director of AA insurance, Janet Connor, had this to say:

“We are starting to see insurers quoting higher prices. I think that is the beginning of a trend, but the market remains very competitive,”

However she did also state that these price rises were not going to be happening at a very quick rate, claiming that “the rate of increase is not going to be turbo-charged.”

Although the market price for car insurance now looks set to rise, it is worth noting that the average price of car insurance has actually dropped by 6% in comparison to this time last year.

The biggest price drops in the insurance market can be seen in the reduction of home insurance premiums.

Quotes for home and contents cover have fallen by around 9.6% (equal to around £17) since last year.

These price falls can be largely attributed to fairly calm weather conditions over this most recent winter period.

Janet Connor echoed this sentiment:

“Home premiums are most likely to be affected by extremes of weather and the recent winter has on the whole been notable for its lack of heavy rain, snow, winds and extreme temperatures,”

Save money on your car insurance by comparing quotes with MoneyExpert and earn £25 cashback when you take out a policy.

Leave a Reply

Your email address will not be published. Required fields are marked *