Insurers Break Promise on Premiums

Car insurance premiums rose in the third quarter of 2014 for the first time since 2012, signalling an end to the insurers’ promised decline in motor premiums.

“The truth is, falling premiums had more to do with competitive tension than any benefit afforded by reforms. Premiums are, on average, now similar to their 2010 level and are no longer economically sustainable,” said Janet Connor, managing director of AA Insurance.

Simon Bransby of Norwich Personal Injury firm Morgan Jones & Pett said: “Is this really a surprise that car insurance premiums are going up? It was only recently the insurance industry made its promise to Government there would be a clear cost saving to consumers as a result of recent reforms but premiums are on the rise already"