Insurance premiums for motor and home have not hit the peaks anticipated, say the AA British Insurance Premium Index in their latest findings.
After soaring by 6% through last year, the index now records a small fall, with the average fully comprehensive motor insurance now standing at £682, down a not very exciting £3 on December 2007.
Buildings insurance has remained steady while contents insurance has risen by just 1% for the first quarter of 2008. Combined Buildings and Contents packages have dropped by an average £4 since the start of the year.
However something has to give. The current trend for Personal Injury Claims and Legal costs, USA style, is costing the motor insurance industry £112 for every £100 taken in premiums.
The AA predicts that a realistic 20% increase in premiums would be required for the industry to show a profit in this sector. The good news for you and me is that the motor insurance companies see more kudos in gaining a fat share of the market, than they do in showing a profit. The bad news of course is that you can be absolutely sure that we are making up for it on premiums in other sectors.
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