Drivers rejoice! Insurance premiums fall - Car insurance - News - Moneyfacts


Drivers rejoice! Insurance premiums fall

Drivers rejoice! Insurance premiums fall

Category: Car insurance

Updated: 26/11/2012
First Published: 23/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Long suffering drivers could be excused for raising a glass (when not at the wheel) to the news that average car insurance premiums fell in the first three months of 2010.

The average quoted premium for a comprehensive car insurance policy fell by 3.2% in the first quarter of the new year, data from the AA has revealed.

The average price of a third party, fire and theft policy (TPFT) also fell, by 4.5%.

However, this good news has been tempered by AA analysts who believe that respite for drivers is temporary, with an upward trend in premiums expected over the rest of 2010.

Simon Douglas, director of AA Insurance, said that while the fall in average premiums was something of a surprise, such trends are not uncommon in the first three months of a year.

"Most years we have seen insurers hold their premiums during the first quarter of the year, when there is greatest competition for business. It's when most cars are sold and historically, it's when most car policies are renewed," he commented.

The AA's Shoparound premium – an index of the cheapest quotes – showed a small increase, with comprehensive policy prices rising by 0.6% and TPFT cover up by 4.5%.

Annual comparisons make for difficult reading for drivers. Comprehensive cover premiums have risen by 13.4%, while TPFT, a favourite with young and newly qualified drivers, rose by 19%.

The figures also revealed that the average quoted premium for an annual policy rose by 1.8% in the first quarter of 2010, although contents cover dropped in price by 2.6% on average.

Compare car insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Car insurance premiums race ahead

Car insurance only ever seems to be on the rise, and unfortunately, this upward spiral shows no signs of ending any time soon. Instead, average premiums have ramped up again – and they’re expected to do so further in the months ahead.

Car insurance premiums rise by £39 in a year

Car owners are being urged to shop around for their insurance after the latest figures from insurance trade body the Association of British Insurers (ABI) revealed premiums had increased by 10% in the past year.

Car insurance costs hit new high

For many people, car insurance costs seem to be only ever on the rise - and unfortunately, this trend looks set to continue, with new figures revealing that car insurance is rising once again – and that the average premium has now hit a record high.