The cost of car insurance is likely to rise over the next year, according to the AA, and home insurance is probably not going to get any cheaper either.
The last quarter of 2014 saw comprehensive car insurance premiums rise by 0.2 per cent, putting it up to an average £540. It is feared that prices could climb by as much as ten per cent.
Throughout the New Year, the AA predicted that the costs of insuring motors will rise, although not as high as the peak in 2011, which saw prices £200 more expensive than they are now.
“Car insurance is extremely competitive. Nevertheless the underlying trend is upward,” said Janet Connor, the managing director of AA Insurance.
The data and predictions are based on the AA Insurance Shoparound survey, which took in the average premium generated from a standard set of risks from the five cheapest quotes from insurers and price comparison websites.
On the other hand, the cheapest buildings and contents insurance prices barely changed in the final quarter of last year, and they are not expected to change much, unless there is major weather damage claims over the next few months.