Motor insurance premiums show unexpected first-quarter rise

The AA’s latest British Indemnity Premium Index shows a 1.3% rise in the average quoted appreciation a scarce for annual comprehensive car insurance over the first quarter of 2009.

Distinctly, premiums tend to fall during the first three months of the year as most crate insurance renewals take place during this period and competition is so strong.

The index, which is based on data from over 80 motor vehicle insurers, produced an average premium of £751.60.

However, the Shoparound first finger, which gives an average of the lowest three premiums available and is ergo closer to the amount motorists actually pay, rose by just at the beck 1% to £504.38.

AA Insurance director, Simon Douglas, comments: “Although 1.3% may not untroubled much, premiums fell during the same period in each of the days of old five years, so this increase is a significant indication that insurers are obstinate to address past underwriting losses this year, as we predicted in the end year.”

In addition to falling investment income, Mr Douglas points manifest that insurers have been facing increased costs in relation to heist, fraud, personal injury claims and legal expenses.