11 April 2007
The average cost of car insurance during the first three months of 2007 has shown a slight decrease, according to new figures.
AA's British Insurance Premium Index found that the average car insurance quote for the first quarter of this year was £802, down from the record £806 witnessed in the last quarter of 2006.
Over the past 12 months, the total increase in car insurance premiums stands at 5.8%.
Kevin Sinclair, Managing Director of AA Insurance, commented: "Some distributors, especially online providers, are taking advantage of the rising trend to offer big introductory discounts and that has checked premium averages.
"But there is a limit to how long they can hold back the tide. I had expected premiums to continue rising and I think the underlying pressure is still upward."
Meanwhile, the average cost of car owners taking up third party, fire and theft insurance also witnessed a small drop, from £999 to £993.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.