Car insurance UK premiums on the rise

Two recent surveys have warned consumers about the dangers of rising car insurance UK premiums.

Over the last three months good winter weather saw the average comprehensive car insurance premium quote fall 0.7 per cent - or £5 - to £750 a year, the AA Insurance Index revealed today.

This latest fall means the average price for comprehensive cover has now fallen 3.3 per cent (£25) over the last 12 months. Motorists taking out third party, fire, and theft cover saw their premiums fall as well, but by a far more modest 0.2 per cent.

But the AA warned that, good weather aside, there are signs that the car insurance UK price cutting of the past two years is coming to an end.

"While these results are, of course, good news for customers, we need to be cautious that a return to more normal conditions doesn't lead to a sudden reverse of the current trend," said Kevin Sinclair, director of AA Insurance.

And despite a falling average car insurance UK price, a large number of customers are still seeing rises in their premiums.

But while some insurers are clearly raising premiums, the AA found that its "Shoparound figure" - an average of the three lowest premiums on its Insurance Index - was virtually static over the last 12 months.