The average cost of comprehensive cover increased by 8.6% between July and September, however this is a drop on the 14.2% rise last quarter, according to Confused.com/EMB Car Insurance Price Index.
The index revealed that the average comprehensive premium now stands at £650, an increase of £51 in the quarter.
However, the report found that the cost of comprehensive policies has risen 37.5% since October 2009.
Third party, fire and theft (TPFT) cover has risen by 11.7% in the last quarter and 54.2% over the last 12 months.
Men aged 17-20 years old received the biggest quarterly increases for comprehensive policies at 10.9% while older drivers adding children to their policies also continued to receive above average increases.
The index revealed that inner London experienced the largest regional quarterly increase for comprehensive policies at 11.6%.
EMB partner, Peter Lee, said: “The price corrections that have been taking place over the past year or so have been essential to getting many private motor insurers back on an even keel after poor 2009 results. The scale of bodily injury claims inflation revealed in a recent study of 85% of the private motor market has emphasised the need for price rises.”
He continued: “However, the level of increases is starting to slow down; with each month in the quarter showing flatter price rises than the previous one. Medium-term I think there’s a realisation of the need for additional strategies for dealing with rampant bodily injury costs and managing fraudulent behaviour such as the wider use of risk indicative external data.”
Author: Louise Meeson
Source: Insurance Age | 12 Oct 2010
