Further drops seen in car insurance

The AA has said that car insurance is continuing to fall because of an increase in competition within the market.

In the third quarter of 2013, premiums dropped by their largest margin since records began in 1994, according to the breakdown recovery company.

The finding was revealed after determining the average of the five cheapest car insurance quotes for each demographic across the country, which then represents the nation as a whole.

According to the study, prices fell by 12.4 per cent over the last year up until September 30th.

The news follows a period of continual increases in the price of premiums – which rose by over 40 per cent over the past two years.

AA Insurance’s director Simon Douglas said: “These drops are dramatic and many insurers are reducing rates based on anticipated savings from new measures in the Legal Aid, Sentencing and Punishment of Offenders Act 2012.”

He added that motorists who have abided by the rules have been “punished” in the past by those who would try to defraud the system through things like erroneous whiplash claims – which superficially bumped the national cost of insurance up.

Related Articles