UK motor insurance premiums rise
British car insurance premiums have seen a rise of more than 5 per cent in the second quarter compared with the previous three months. The recent announcement in the 2015 Budget, that insurance tax is set to increase will likely see premiums rise, the AA said on Tuesday.
The average quote for an annual comprehensive car insurance policy was £549.46 in the second quarter, the AA said in a statement, a rise of 5.2 per cent over the first quarter and 5.5 per cent over a year earlier.
Janet Connor, managing director of AA Insurance said, ‘Insurers have been releasing their reserves to maintain their competitive edge to the point where this is no longer sustainable and we are seeing premiums beginning to rise once more.’
Janet continued, an increase in insurance premium tax to 9.5 from 6 per cent, announced in this month’s budget statement, would likely put further upward pressure on premiums, adding ‘those on the lowest incomes may consider driving without cover’.