People are paying increasingly more for car insurance and home insurance, the AA found.
The last three months have seen the average comprehensive car insurance premium rise by more than one per cent, according to the insurance provider’s British Insurance Premium Index.
Drivers now shell out an average £765.46, with the amount rising to £937.13 if the car insurance policy includes cover for third party, fire and theft.
Building insurance has also gone up by an average one per cent, with premium insurance costing £205.17.
Home contents insurance is costing two per cent more than three months ago, at £150.99.
But despite more expensive building insurance and home contents insurance, premiums are still great value for money, according to the insurance provider’s managing director Kevin Sinclair.
“Quotations for buildings insurance rose by just £2.33 to £205.17, but remain less than when the AA Index started in 1994. Premium changes have been erratic but we could be seeing the start of a steady upward trend,” he says.
Commenting on the rise in car insurance for the second quarter running, Mr Sinclair predicts that similar rises will occur over the next few months.
“This will start to mitigate the sharply rising costs of insurance claims,” he says. “Similarly, I expect to see this past quarter’s premium rise for home insurance to continue.”
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