Car insurance costs set to rise, says AA
23 Jan 2015
Car insurance costs are likely to rise in the coming year, perhaps by up to 10%, according to the AA.
The AA Insurance Shoparound survey takes an average premium from the five cheapest quotes from insurers and price comparison websites, for a standard set of risks.
The latest survey showed that the cost of annual comprehensive car insurance had risen by 0.2% to £540 in the final three months of 2014, and the organisation expects costs to continue to rise.
"Car insurance is extremely competitive. Nevertheless the underlying trend is upward," said Janet Connor, managing director of AA Insurance.
However, the peak cost in 2014 of £540 was still £200 cheaper than the peak in 2011, there having been three consecutive years of price falls.
Meanwhile, the survey found that buildings and contents insurance premiums were little changed in the final three months of 2014, and the AA predicted that home insurance premiums were likely to remain static in 2015, barring significant weather damage claims over the winter.