Car insurance down - but it isn't all good news

21 April 2015

old driver car Car insurance premiums in Britain fell by 1% in the first quarter of this year, which is reasonable news, but no great shakes. Still, a saving is a saving right?

These figures are from the AA, who say that the average quote for an annual comprehensive car insurance policy dropped to £530.47, which follows numerous months of price rises. However, insurers have form when it comes to trying to lure motorists in with price drops in the first quarter.

However, messing things up are the number of claims for whiplash, which is putting an upward pressure on prices, according to the AA. They say that the cost of claims is larger than premium income for many insurers.

Of course, Bitterwallet talked about this a while ago, with drivers coughing-up £93 each (on average) due to the volume of whiplash claims.

"We’re starting to see insurers quoting higher prices and I think that’s the beginning of a trend, but the market remains very competitive,” says Janet Connor, managing director of AA Insurance.

“My greatest fear is that if insurance fraud such as whiplash injury claims isn’t brought under control and quickly, we will see a repeat of the spiralling premiums of 2010 and 2011 when the cost of the average policy rose by over 40 per cent in just 12 months.”

TOPICS:   Motoring   Insurance

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