AA: Car insurance currently going cheap

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AA: Car insurance currently going cheap

The AA has conducted a study which reveals that there is something of a spring sale on car insurance at the moment, with many providers putting increases in premiums on hold.

Preliminary figures for the organisation's British Insurance Premium Index have revealed that average quoted premiums for comprehensive cover are unlikely to show much movement during the first quarter of 2009.

Simon Douglas, director of AA Car Insurance, explained that the first quarter of the year is when insurers get most of their new business and customers renew their insurance, so providers tend to keep premiums low in order to remain competitive.

However, he added: "Despite the temporary levelling-off of premiums, I fully expect them to resume the accelerating upward trend after March, or even earlier."

The AA's insurance premium index for last year revealed that the average insurance premium rose by one per cent in the final quarter.

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