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Insurance Premiums Set To Rise

One of the UK's biggest car insurance firms has warned that the recent fall in premium costs may be ending, despite regulatory efforts to bring bills down further.

Henry Engelhardt, Cheif Executive of Admiral, said: "In the UK there are some signs that premiums are no longer falling but we have yet to see firm evidence of an inflection point and a return to premium growth.

"Admiral's premium rates have been pretty flat over the first half of the year, though as a result of the reductions in 2013, total premiums are down around 9% compared with the first half of 2013."

Competition has driven down the cost of car insurance since 2011 as companies have seeked greater market share, but several major insurers have quietly begun to raise prices. The AA charted a 16.6% decline in average Comprehensive cover costs in 2013 to £531 while the figure for third party, fire and theft stood at £725 - down more than 18%.