November 5, 2009

Most people find the process of getting one motor insurance quote quite tedious enough. But not the AA; they’ve just got a thousand of them from no fewer than 90 different “providers.” The irony is they’re not planning to take up a single one of them. Talk about time wasters!

And would you believe they go through this whole bizarre ritual four times a year? This time round, however, they’ve actually discovered something mildly interesting. Since their last night of a thousand quotes, three months back, it seems average premiums have gone up 5.6%.

The last quarter’s increase, AA stats men claim, is the steepest three-month rise since time itself began – or at least since they started compiling their giant quote basket 15 years ago.

According to their press release, average fully comp renewal premiums are up at £821.00. But people who shop around can get away with an average £522.

Hardest hit by these increases are younger drivers whose TPFT premiums increased by almost 10% in the last quarter.

Why are motor insurers ramping up rates? According to AA man Douglas Simon, it’s because of “rising costs, depleted reserves and lower investment income,” with the slump-fuelled fraud-fest and increased personal injury claims also playing a part.

Is anybody making a profit yet? Someone else’s survey shall doubtless show us soon.


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