In the final quarter of 2014, studies showed that across the insurance market, prices on car insurance rose by nearly 0.2%, to an annual bill of £540. This, compared to the nearly £750 prices in 2011, is good but it could be steadily starting to climb back to those heights again, say experts.?
The AA have been looking at price trends in the last year and over a longer time period as well and say that although the market is competitive, the natural trend currently is one of upwards price growths. The survey taken by the AA takes the five cheapest insurance quotes from individual companies and from price comparison websites and then compares them to previous numbers from similar data from other years.
After three years of price falls from a peak around 2011, the prices have now started to creep back up again. Some of this has been attributed to insurers looking at longer-term policies that are more expensive but can be more thorough and comprehensive. Some of the rise has also been attributed to insurers wanting to charge more in the face of the increasingly likely national floods and natural emergencies that are becoming more and more common. Insurance premiums do have a tendency to be higher over the winter periods where difficult weather and light conditions tend to make for more accidents. However even taking this into account, insurance prices are definitely on the rise.
There have been complaints to the Competition and Markets Authority that claim exclusive pricing deals with price comparison websites are keeping insurance prices artificially high. The negotiating power of the large comparison websites means that costs and prices can be marked up and increased, with suppliers having little say in how their packages are set.
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