Car insurance prices are not rising in the UK at the moment thanks to a healthy environment of competition and the emergence of new sales channels, the AA has reported.
Reported on the autoindustry.co.uk website, the latest AA’s Insurance Premium Index shows that car insurance prices have not inflated over the past three months. The motoring association has attributed the status quo to healthy competition in the auto insurance sector in the UK.
According to the AA index, the average cost of comprehensive car insurance fell by 0.5%, while the average quote for third party, fire and theft car insurance only increased by around 1.74%.
Comprehensive policies now cost an average of GBP758.38 a year and third party, fire and theft policies an average GBP956.88. However, Kevin Sinclair, managing director of AA Insurance, believes the current restraint in the auto insurance market cannot be maintained and premiums will start to rise soon.