AA Insurance produce a quarterly index of UK car insurance premiums, with their latest one showing an increase overall of almost 1 percent. This is also the fifth consecutive report that has shown increasing premiums too.
Fortunately for drivers the market for car insurance is a very competitive one, meaning that good deals can still be found for those willing to shop around. The AA looked at the cheapest three offers available and came to the conclusion that strong competition had led to these offers being lower than the last quarter, down by around half a percent.
One of the main reasons for car insurance premiums rising like they have been is the plethora of personal injury claims and added legal costs they now have to deal with. The insurers need more money than ever to deal with the extra work and claim culture that is prevalent now. On a specific level there were the floods earlier in the year that created a surge in claims as motorists vehicles were covered in water leaving them totally unrepairable.