Motor insurance: Cover getting cheaper

Wednesday, 04 July 2007

Car insurance premiums are actually falling, claimed one finance website, despite claims earlier this week that they were at their highest ever.

A survey by one insurer had shown that a 2.5 per cent increase in the second quarter of 2007 took the costs of motor insurance to its highest ever.

However, the finance website claims that the figures are incomplete as they do not take direct insurers into account and that when direct insurers are factored in, premiums have dropped 4.6 per cent in the second quarter.

According to the website's research, UK premiums fell from £738 in April 2007 to £703 in June.

James Harrison, the chief executive at the website, said: "The recent fall in average premiums in the second quarter reflects the rates of almost every insurer and broker in the UK, including direct insurers such as Swiftcover.com."

He added: "The falling premiums reflect the competitive pressure insurers are under to retain and attract ever-savvier customers."

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Swiftcover and swiftcover.com are both trading names of AXA Insurance UK plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority