Car insurance premiums stabilise
Date: 18/04/2008 12:00:00
Premiums for holders of comprehensive car insurance have steadied, according to new figures from the AA.
The insurer has said that average comprehensive premiums now cost £682 a year, representing a £3 fall compared with the end of 2007.
Andrew Strong, chief executive of AA Insurance, remarked that March is traditionally a busy period for sales of car insurance, meaning that a number of companies are likely to have held rates to attract more customers.
However, he went on to warn that the levelling off of premium costs could bring bad news for drivers further down the line.
"If premiums don't continue to rise at a realistic rate, there will be a point when large premium increases become inevitable. That would unhelpful for customers and will damage the reputation of the industry," Mr Strong explained.
Earlier this month, the AA warned motorists of the perils of parking on local streets instead of a secure car park or private driveway, stating that drivers who do so are more likely to become victims of crime.