AA reveals home and car insurance premiums "levelling off"
Home and car insurance premiums appear to be levelling off, with young drivers actually experiencing a fall in the price of cover, new figures have shown.
According to the latest AA British Insurance Premium Index, two years of increases in charges seem to be coming to an end after the average cost of an annual car insurance premium rose by 3.6 per cent over the three months to the end of June to £923.90, the lowest hike for 18 months.
Meanwhile, home insurance premiums have fallen slightly over the second quarter of 2011, with buildings cover dipping 0.6 per cent and contents falling 1.1 per cent, even though the typical cost of a combined policy rose by 1.5 per cent.
Drivers aged 17-22 felt the biggest benefit, the analysis showed, with premiums down 5.6 per cent during the quarter.
Simon Douglas, director of AA Insurance, says: "The easing of insurance prices is welcome news, especially for young drivers whose premiums have become unaffordable for many.
"I predicted last year that during 2011 we would see competitive pressure returning to the market which would help to reduce the rate of increase," he added.
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