Insurance premiums may yet rise

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A number of factors could mean that insurance premiums have not reached a plateau, it has been suggested.

Recent figures have recorded a slight drop in average insurance costs, reports AA Insurance.

But chief executive officer Andrew Strong explains that seasonal effects and the fallout from last years flooding may see charges increase in the coming months.

"March is a peak period for car insurance sales with many companies holding rates to gain market share," he contends.

He adds: "Speculation that home insurance premiums would rocket because of last years floods was clearly wrong - but I do expect premiums to continue rising."

AA Insurance notes that a similar pattern was recorded during the early period of 2007, but that premiums continued to rise over the year.

Recent figures from the firm showed that 43 per cent of Britons have had their car vandalised while parked on the road, with almost one in four experiencing similar damage in a supermarket car park.

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