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Car insurance premiums could rise (10/08/2006 at 17:36)
Drivers have been told that car insurance premiums could rise in the next three months.
Premiums have dropped in general across the first-quarter of 2006, however, prices rose in the second-quarter, with analysts suggesting this signals the beginning of a series of rises over the next few months.
Reports from website Confused suggest average national car insurance premiums fall by £555.66 in the first three months of the year to £554.96 in the second-quarter.
Debra Williams, managing director of confused.com told Leeds Evening Post: "We have seen aggressive pricing policies over recent years, which has encouraged the entire market to become fiercely competitive.
"However this has only been achievable by insurers using reserves that had been set aside for claims in earlier years."
It was recently reported that insurance premiums across divers sectors could rise as brokers stop attempting to undercut each other's prices.
The Times commented that many providers are competing for new business with older ones consolidating, which has previously led to reduced premiums for clients.
Premiums have dropped in general across the first-quarter of 2006, however, prices rose in the second-quarter, with analysts suggesting this signals the beginning of a series of rises over the next few months.
Reports from website Confused suggest average national car insurance premiums fall by £555.66 in the first three months of the year to £554.96 in the second-quarter.
Debra Williams, managing director of confused.com told Leeds Evening Post: "We have seen aggressive pricing policies over recent years, which has encouraged the entire market to become fiercely competitive.
"However this has only been achievable by insurers using reserves that had been set aside for claims in earlier years."
It was recently reported that insurance premiums across divers sectors could rise as brokers stop attempting to undercut each other's prices.
The Times commented that many providers are competing for new business with older ones consolidating, which has previously led to reduced premiums for clients.