AA warns of projected rise in car insurance costs
22 Apr 2015
The AA has warned that it expects car insurance costs to rise over the rest of 2015, despite a fall in the first three months of the year.
Many insurance premiums have become cheaper in recent years, largely due to a high level of competition. AA figures show that the cost of annual comprehensive car insurance fell by 1% in the first quarter of 2015, taking the cheapest deals down by £5.58 to £530.47.
Furthermore, the cost of car insurance has fallen by nearly 6% compared with the same quarter in 2014.
However, premiums rose for drivers aged over 60, and the AA claims that other age groups would also soon start to see rises.
‘We are starting to see insurers quoting higher prices. I think that is the beginning of a trend,’ said Janet Connor, managing director of AA insurance. However, she added: ‘But the market remains very competitive. The rate of increase is not going to be turbo-charged.’
Earlier in the month the AA accused fuel retailers of ‘plundering drivers' pockets’ by disproportionately raising the price of petrol and diesel at the pump. The organisation claimed that in March and April the price of oil had fallen by nearly 5%, but petrol prices were up by 1.2%.
Edmund King, the AA’s president, complained that: ‘Cars are like blank cheques for whoever feels the need to balance the books by plundering drivers' pockets.’