Car insurance premium rises slowing
Increases in car insurance premiums have slowed, according to new figures. But higher costs for insurers could lead to "inevitable large premium increases", AA said.
The average annual comprehensive car insurance premium now stands at £682, £37 more than last year but £3 less than at the end of 2007.
The average third party, fire and theft cover dropped from £846 at the end of 2007 and now stands at £838.
An AA spokesman said: "March is a peak period for car insurance sales with many companies holding rates to gain market share. But insurers continue to be squeezed between increasing costs such as legal expenses and personal injury claims, and competitive pressure.
"For every £100 taken in premiums, the industry shells out £112 in claims. 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."
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