AA: Car insurance price rises are easing off

The cost of cover is not as high as it has been, it is claimed.

The cost of car insurance may have risen in recent times, but this increase is starting to ease off.

That is according to the latest benchmark AA British Insurance Premium Index, which found home insurance is also following the trend.

On average, the price of an annual car insurance policy rose by 3.6 per cent over the three months ending June 30th and this is the lowest increase in 18 months.

Drivers aged between 17 and 22 should also be pleased to learn that premiums dropped by 5.6 per cent during the quarter.

Director Simon Douglas comments: "This is the smallest increase we have seen for some time and I believe that over the rest of this year we will at last see premiums level off."

Malcolm Tarling, spokesman for the Association of British Insurers, recently suggested life policy insurance is something many people ignore until they get older, but doing so is unwise.

By Mark Hornby