Car insurers relax price rises
For the fourth quarter in a row, the percentage rate of prices increases for both comprehensive and TPFT cover has fallen. In the case of comprehensive, the quarterly increase of 2.7% was the lowest seen for nearly two years while the quarterly TPFT increase of just 1% set a near three year low.
These reductions have had a considerable impact upon annual rates of premium inflation, with comprehensive now standing at 24.8%, compared to nearly 38% just six months ago. The equivalent figures for TPFT are 32.8%, as opposed to 57.2% at the end of 2010.
The continued deceleration in price increases comes despite recent Towers Watson analysis of the 2010 Financial Services Authority returns that showed the private motor insurance industry as a whole paid out £1.24 for every pound of premium received in 2010.