From This is Money:
The cost of cover has jumped 5.6 per cent in the past three months, the fastest quarterly rise in the past 15 years, according to broker AA Insurance.
The cost of comprehensive cover has risen 14 per cent in the past year. The average quote on AA’s Insurance Premium Index is £821, up from £721 a year ago.
The AA’s measure of the ‘shop-around price’ – the average of the cheapest three quotes for each risk – jumped 13 per cent from £488 to £551.
Simon Douglas, director of AA Insurance, says: ‘Most drivers are experiencing sharp increases when they renew their insurance.’
Keith Maxwell, head of motor insurance at More Than, says: ‘Insurers can only go on writing unprofitable business for so long and we’re seeing more expensive and more frequent claims for personal injury.’
Against the backdrop of rising prices, it is more important than ever to become a smart buyer.
Never take a renewal quote from your existing insurer without checking the market for a…