3 October 2007
Flooding experienced in some parts of the UK during the summer has had little effect on car insurance premiums in the last three months, figures from Experian suggest.
The global information solutions company's latest Motor Insurance Benchmark showed that the average quote for comprehensive cover moved to £567.30 during the third quarter of the year, rising by only 0.8 per cent on the second quarter.
Despite this, the firm notes that the broker market witnessed a large increase in the average premium rate compared to the previous quarter for comprehensive and third party, fire and theft insurance.
Comprehensive insurance premiums increased from £495 in June to £538 in July and third party, fire and theft from £570 to £632, with the average quote of £639.70 for third party, fire and theft insurance premiums now at its highest point since July 2005.
David Murby, Managing Director of Experian's Insurance Service division, explained that the dip in broker prices in June came as a result of a range of competitive new products being brought onto the market.
"However, the subsequent increase in broker premiums is not a result of the floods that month," he said.
"The true impact of the floods is likely to manifest itself in insurance premiums over the next few months in the direct market once claims have been settled and insurers have been able to assess the real impact. The broker market is likely to follow suit."
© 2008 Adfero Ltd
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