Industry News
AA: Motor insurance premiums rose by 2.4% in last quarter
28th January 2008
The latest findings from the benchmark AA British Insurance Premium Index show that premiums for both car and home insurance have once again increased. Car insurance premiums rose, comprehensive by 2.4% and third-party, fire and theft (TPFT) cover by 1.4%. Buyers can now expect to be quoted on average £629.04 for an annual comprehensive policy and £628.60 for TPFT.
Over the past quarter, average quoted premiums for home buildings insurance rose by 1.4% (to an average of £218.60 for an annual policy). This follows a rise of 3.0% over the previous quarter – the largest single increase since the Index began in 1994, reflecting the £750 million domestic property claims following last summer's flood claims.
The AA Index averages premiums from up to 85 motor and 37 home insurance companies and schemes, based on a basket of 1,000 car and 750 home risks.
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