AA: Average car insurance premium now £806

Posted :10-04-2007

The average price of car insurance cover fell in the first quarter of this year, new figures from the AA reveal.

After reaching £806 - which was the highest average ever seen in the sector - in 2006, prices for comprehensive cover dropped to £802 at the end of March 2007.

In addition, those choosing to purchase third party, fire and theft motor insurance saw prices fall by 0.62 per cent to £993, down from £999 three months prior.

However, this type of cover is likely to rise in price year-on-year, remarked Kevin Sinclair, managing director of AA Insurance.

"It is typically bought by young drivers. Premiums reflect the facts that under-21-year-olds are five times more likely than those aged 35-plus to have an accident," he said.

Being liable for an accident can often cause motor insurance premiums to increase, similar to being given penalty points or a driving conviction.


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