Britain Car Insurance Industry

The car insurance industry in Britain is worth about £30,000 million annually – and rising. Some companies in and around the business have responded in recent days with suggestions that their prices are actually dropping.

“Car premiums fall”, the AA announced last week. A price comparison website, Tiger, went one step further by referring to “tumbling prices” of “significant” proportions.
So it’s becoming cheaper to insure a car in Britain? The fact is that when comparing like with like – October 2010 versus October 2011 – car insurance prices have continued to rise while outstripping general inflation, itself at a 20-year high .
The best way to measure prices charged for cover today against previous years accurately is to refer to the AA-compiled British Insurance Premium Index. The latest (third quarter, 2011) version proved elusive, but I now have a copy. Its over-optimistic headline screams of prices falling, rather than rising – but if the motoring majority believes that, it’ll believe anything.

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