AA Insurance: Premiums pause for breath

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AA Insurance: Premiums pause for breath

After rising steadily for the past year, insurance premiums have finally stalled, according to AA Insurance.

Its index recorded a slight fall in the average premium quoted for car insurance, down £3 from the end of 2007 to £682.

Similarly, the average premium for combined buildings and contents cover fell by £4 over the same period, while single buildings cover remained the same and contents insurance rose by one per cent.

Over the last year the price of an average car insurance premium has risen by six per cent, the company found,

Andrew Strong, chief executive of AA Insurance, said that despite the slowdown, "I do expect premiums to continue rising over the remainder of the year".

Yesterday AA Travel Insurance reassured its customers that it would not be excluding baggage loss and delays for those flying out of Terminal 5 from new insurance policies, unlike some other companies.
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