21st Jan 2016 12:08
LONDON (Alliance News) - British car insurance premiums jumped by more than 10% in the fourth quarter of 2015 against the prior three months, roadside assistance company AA said, the largest such increase since 2010.
The average premium for comprehensive cover rose by 10.4% to GBP625.70 from GBP566.56 over the three months, taking the gain over the course of the year to around 20%.
"We expect premiums to continue to rise though 2016 but not at the exceptional rate recorded over the last quarter of 2015. And the sooner new legislation to tackle whiplash claims becomes enshrined in law, the sooner that will be reflected in the premiums quoted for car insurance," Michael Lloyd, director of AA Insurance, said in a statement.
The likes of Admiral Group PLC, Aviva PLC, Direct Line Insurance Group PLC, RSA Insurance Group PLC, Hastings Group Holdings PLC, and Esure Group PLC compete in the highly competitive motor insurance sector.
Shares in Admiral, up 2.6% at 1,661.00 pence, were among the best performing stocks in the FTSE 100, while Hastings, up 3.6% at 160.60p, was among the top gainers in the FTSE 250.
By Samuel Agini; [email protected]; @samuelagini
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