Insurance premiums on the increase

Monday, 24 January 2011 05:15

Insurance premiums are on the up, which could spell bad news for motorists.

According to the AA's British Insurance Premium Index, over the last three months of 2010 care insurance premiums rose by 6.4 per cent, adding £51 to the price typically paid by drivers for their annual comprehensive car insurance policy.

Meawhile, for home insurance, the typical cost of a buildings policy also rose by £10 or 7.7 per cent over the quarter.

Simon Douglas, director of AA Insurance, stated there has been no let-up in premium increases as insurers struggled to cope with losses from 2009 "when for every £100 taken in premiums, £123 was being paid out in claims".

He added this has led to the biggest annual premium increases seen since the AA Index began in 1994.

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