April 2008 Car News - GBCarLoans.com

18th April 2008

Car insurance costs have fallen this year

Car insurance premiums have not experienced the spike that experts had been predicting, new research reveals.

According to the AA British insurance premium index, a number of types of car insurance policies have actually become cheaper since the end of last year.

This is most marked in the case of third party and theft car insurance, where the cost of cover has fallen by 0.9 per cent between the final quarter of 2007 and the end of March.

As a result, premiums for these policies have fallen from an average of £846.50 to £838.50.

Meanwhile, average premiums for comprehensive car insurance have fallen by 0.5 per cent to £681.93.

Andrew Strong, chief executive of AA Insurance, said: "A recent Datamonitor report suggested that the car insurance industry could become profitable by the end of 2009 - but we calculate that an annual premium increase of 20 per cent would be needed to achieve that.

"The latest AA Index shows that this is a far from realistic expectation."

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