Car leasing customers may find their insurance premiums decrease in the future, with research revealing that cover seems to be levelling off after two years of hikes.
During the three months ending on June 30th, rates dropped by 5.6 per cent for drivers aged between 17 and 22 years old, following more than two years of quarterly rises, according to the most recent AA British Insurance Premium Index.
The average cost of annual insurance climbed by 3.6 per cent during the quarter, representing the lowest increase in a year-and-a-half.
Director of AA Insurance Simon Douglas welcomed this easing of prices, particularly for younger motorists who have been facing unaffordable premiums.
“I predicted last year that during 2011 we would see competitive pressure returning to the market, which would help to reduce the rate of increase,” he went on to remark. “I believe that over the rest of this year we will at last see premiums level off, despite the gloomier predictions of other market commentators.”
New legislation could also help boost confidence among car insurers, such as the introduction of continuous insurance enforcement making it illegal to keep a registered vehicle that is not declared as off the road or that is not insured, Mr Douglas continued.
Police crackdowns could also be helping to drive down premiums, with the expert noting that forces confiscated more than 150,000 motors that were being driven illegally in 2010, while the establishment of a dedicated fraud unit might also prove to be beneficial in this regard.
According to price comparison site moneysupermarket.com, distracted drivers could push up their own premiums by being careless while on the road, with the 16,485 motorists convicted of driving without due care and attention every year facing points, a fine and a rise of 27 per cent on their tariffs.
Posted by Charles Dawson
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