29 April 2009
Double-digit increases in car insurance premiums should be expected by motorists this year, it is claimed.
According to the AA, the average quote for a premium policy increased by over 1% during the first three months of this year, the first time in several years this has been seen.
"The industry is facing escalating costs, falling investment income and underwriting losses. Premium rises are therefore inevitable," commented Simon Douglas, Director of AA Insurance.
He believes that premiums usually fall slightly during the first quarter, as this is when many people look to renew their policy, leading insurers to remain competitive.
It is at this time that the March car registrations take place, he added, prompting people to think about a change of policy.
With uSwitch.com, people can make sure they are getting the cheapest car insurance deal. Earlier this month, the price comparison website revealed how 4.7 million motorists miss their MOT renewal date.