The AA’s British insurance premium index states that although the average quoted comprehensive insurance premium has fallen by more than 3% since the end of last year, the past quarter saw a fall of just 0.8% from £759 to £753. The average quotation for third party, fire and theft cover rose by £2 to £904.
"Non-comprehensive cover is mainly chosen by young drivers who represent the highest risk for insurers," says Neale Phillips, director of AA Insurance. "I believe this small upward trend reflects the increasing cost of meeting third-party claims."
Phillips believes the industry is entering a period of relative stability. "Insurers appear to be refining the way they calculate premiums. This is leading to the reductions in premiums we are now seeing despite rising claims costs."
|£ ave Jul 94 (index)||£ ave Jul 04 (index)||£ ave Oct 04 (index)||Ave Index Shift from 1994||Ave quarterly shift %||Ave annual shift %||Shop-around premium Jul 04||Shop-around premium Oct 04||Shop-around quarterly shift %|
|Car –comp||£408.44 (100.0)||£759.03 (185.8)||£752.84 (184.3)||+84.32||-0.81||-2.94||£475.14||£466.91||-1.73|
|Car –non-comp||£465.46 (100.0)||£902.20 (193.8)||£904.10 (194.2)||+94.24||+0.21||-0.91||£516.31||£530.98||+2.84|