Car insurance will go up by nearly 10% reckon AA
The self-styled 'fourth emergency service' believe that car insurance could rise by up to 10% in the next 12 months, and that home insurance premiums are unlikely to go any lower either.
According to the latest index of the cheapest deals on the market showed that the cost of annual comprehensive car insurance had risen by 0.2% to £540 in the final three months of 2014.
However the total was still £200 cheaper than the peak in 2011, the AA said.
Janet Connor, managing director of AA Insurance said: "Car insurance is extremely competitive. Nevertheless the underlying trend is upward."
The AA Insurance Shoparound survey helps to sift out the best deals on an average premium from the five cheapest quotes from insurers and price comparison websites. It showed that the cheapest annual motor insurance had still risen in price during the second half of 2014.
However, the AA has previously said claims management companies and law firms may have found loopholes around the reforms as many insurers have reported a surge in lower-value 'cash for crash' claims, where bad people deliberately brake to cause a vehicle to crash into the rear of their car
Meanwhile, the cheapest buildings and contents insurance premiums didn't alter much significantly in the final three months of 2014, the AA added.
The AA also said that it expected premiums to stay still, bar any freakish weather action this Winter.