<< Most Recent Articles

Insurance market shows rise in premiums

Premiums for home insurance are no longer falling and car insurance premiums are continuing to rise, according to the AA's latest British Insurance Premium Index.

Part of the reason why house insurance premiums are no longer declining is the number of claims for flooding, the organisation stated.

This summer the UK saw flooding on a scale seldom seen this century, which caused approximately £6 billion in damage.

According to the AA, the average premium for house insurance rose by a full three per cent over the last quarter.

John Close, insurer relations director at AA Insurance, said: "We now see the result of that devastation reflected in premiums as insurers meet the cost of drying out and repairing homes as well as temporary re-housing families while their homes were made habitable once again."

Premiums may continue to rise, although "competitive pressure" will ensure that the increases are "affordable", Mr Close added.

Householders or car owners finding it difficult to afford their insurance payments may like to consider a personal loan.

See how much you could borrow when you apply for a loan with Lombard Direct.

© Adfero Ltd

09/10/2007 16:38:47

Most Recent Articles