AA: Spring car and insurance sale

Wednesday, 25 February 2009 09:10

AA Insurance is predicting - due to the difficulties in the motor industry - February and March will be the best time to buy cars or shop around for insurance.
 
Insurance premiums, which rose by 8.7 per cent in 2008, are expected to rise by as much as ten per cent this year, but figures for AA's British Insurance Premium Index suggest that average quoted premiums are likely to remain static during the first quarter of 2009.
 
Simon Douglas, director of AA Car Insurance, said: "Not only will retailers be pinning their hopes on signs of a recovery in car sales, this time of year also sees any underlying increases in car insurance premiums put on hold, or even reducing.
 
"There's more new business and renewals during the first quarter than at any other time of year so insurers tend to discount premiums in order to gain market share. There is therefore intense competition between insurance providers which keeps premiums in check."
 

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