Following sharp rises in car insurance premiums in 2009, the first quarter of 2010 saw prices level out however, the AA says this lull is only temporary.
Following the publication of the AA British insurance premium index, which tracks the movement of both home and car insurance premiums every quarter, the average quoted premium for a comprehensive car insurance policy fell by 3.2 per cent.
Simon Douglas, director of AA Insurance, commented that while the sudden stall in the upward premium trend is a surprise, a respite of this sort isn’t uncommon during the first quarter. He said: “Most years we have seen insurers hold their premiums during the first quarter of the year, when there is greatest competition for business. It’s when most cars are sold and historically, it’s when most car policies are renewed.”
Despite the lull, car insurance premiums have risen by more than 13 per cent since this time last year.