Car insurance premiums are on the up, say the AA, for the first time in two years.
We have recently had a period of bliss as a crackdown on fraudulent claims has driven prices down.
But now it is heading back up, as Aviva predicted and they are likely to rise further.
The market as a whole saw an increase in premium prices of 4.2% over the three months to September, rising to an average of £891.
The cheapest cover rose by 1.2%, or £6, over the same time frame, putting it up to an average of £531, the BBC reported.
Janet Connor, the managing director of AA Insurance, said that “Premiums are, on average, now similar to their 2010 level and are no longer economically sustainable.
“I believe that this small upward movement in premiums will lead to further modest increases over the coming months.”
There are ways to reduce the amount of fraudulent claims without increasing the price of the premiums so much. A suggestion made by Connor is a ban on whiplash claims in low speed accidents, and have the compensation go directly to medical bills rather than to the claimant.
Conversely, it has also been reported that the average building and contents insurance fell by 2.4% over the financial quarter ending in September, and by over 11% across the last year.