According to the AA, car insurance rates underwent a slight drop over the past few months.
The motoring organisation stated that the average annual premium price for comprehensive motor car insurance fell to £921, a drop of just £2, in 2011’s third quarter. The AA said that this dip was most likely not the beginning of any new downward trends, and instead warned that premium prices may begin an upward climb once more in 2012.
In comparison to direct car insurance, home insurance costs for both buildings and their contents went up once more. The typical buildings policy had increased by a rate of 14 per cent, the AA said, bringing its new annual cost to £152, while home contents policies have risen by 6 per cent to an average rate of £770 a year.
The car insurance industry has drawn considerable heat over premium prices recently, particularly due to new information revealing they engage in the practice of taking referral fee payments from claims management companies and injury solicitors for the personal details of customers that have been involved in accidents. This has led to an increase in claims volume, critics say, which has aided in driving up premium costs across the board for all insurance customers and resulting in a lack of discount car insurance quotes for the majority of Brits.
In response to the news, the Government announced last month that it would seek to ban referral fee payments for personal injury claims in both Wales and England. The move was welcomed by the car insurance industry, yet few insurers have volunteered to stop taking referral payments from third parties.