Big Guns Push Up Motor Premiums

DRIVERS had to swallow rises of an average four per cent on their insurance premiums during the final three months of 2006, motoring organisation the AA has revealed.

The AA British Insurance Premium Index shows that the price of comprehensive car cover went up 4.35 per cent between October and December last year, leaving the average policy costing an eye- watering Pounds 783.

It was during this period that Norwich Union and Royal Bank of Scotland Insurance, which dominate the car insurance market, substantially increased premiums.

Third-party insurance increased by a smaller amount 0.25 per cent but with an average premium costing Pounds 847, it still works out more expensive than comprehensive cover.

This is because thirdparty insurance tends to be bought by the higher-risk group of younger, newly qualified drivers.

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