Car premiums soften again

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The latest benchmark AA British Insurance Premium Index has revealed further softening in motor premiums in the third quarter of 2012.

The move reverses the upward trend seen in the second quarter of the year, returning instead to the decrease in the first quarter which was the first for three years.

For the three months ending 30 September 2012, the AA's Shoparound index - an average of the cheapest five premiums from directly sold policies for each ‘customer' in a nationwide basket of risks - revealed a 2.9% fall for annual comprehensive car insurance policies to £844. However, with rates having yo-yoed over previous quarters

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