Insurance premiums - Little change in 2005

Premiums for both car and home insurance remained static over the last three months of 2005, following small increases during the previous quarter. That's according to the latest AA British Insurance Premium Index.

The Index tracks the movement of home insurance on 500 risks each for buildings and contents, and on 500 car insurance risks - 404 comprehensive and 96 non-comprehensive. Average quoted car insurance premiums are based on open market rates from 58 of the UK's leading providers and home premiums across 35 providers. Composites, direct writers, brokers and online providers are included.

Putting some numbers on it, the Index shows that over the past quarter, comprehensive car insurance premiums fell by £3.18 to an average quoted price of £762.28. Over the year they have risen by a just under 1% (£6.46) but remain cheaper than in April 2003. However, the Shoparound price - the average of the three lowest quotes in the index - has shown a quarterly increase of over 1% and now stands at £466.56.

Reflecting the number of claims made by younger drivers, third party, fire and theft (TPFT) insurance rose to its highest average quoted premium at £940.50, a rise of more than £30 over the past year.

Elsewhere, home insurance premiums have shown small rises and falls over the year, but ended the year slightly cheaper than at the beginning. The average quoted premium for buildings cover stands at £206.78. This is a fall of nearly £2 over the year - despite an increase of 0.75% over the past quarter. Meanwhile, in response to falling crime levels, contents premiums ended the year slightly less than at the beginning, with a fall of 66p (0.43%) over the past three months. The average quoted premium is still only £7 higher than in 1994.

Over the past quarter, the Shoparound premiums fell for buildings by 0.15% to £137.74 and for contents by 0.68% to £84.59.

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