The cost of obtaining car insurance in the UK has risen, according to new research.
For the second successive quarter, the average car insurance premium has risen by 1.24 per cent, statistics from the AA revealed.
The AA British Insurance Premium index found that despite cuts from many insurers, the cost of third-party, fire and theft car insurance rose by 4.62 per cent
However, the research also indicated that home insurance prices had dropped, with the cost of home contents insurance down by 2.61 per cent over the last quarter.
Kevin Sinclair, managing director of AA Insurance, commented: “The increase is long overdue. Premiums have been kept artificially low by the entry of new insurers seeking market share and the growth of internet sales, coupled with underlying poor results hitting insurers’ accounts.
“Two quarters’ rises may not be a trend but I believe average quoted premiums will continue to go up.”
Norwich Union, which recently made a statement signalling that it would be raising the cost of car insurance, has also created a pay-per-drive policy, which monitors a driver’s vehicle usage and charges accordingly.
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