Car and home insurance premiums remain static, despite growing industry concerns about increasing claims costs, according to the latest AA British Insurance Premium Index.
The AA said the "expected upswing in car insurance premiums has yet to happen", although the last quarter saw a very small increase (0.49%) in average comprehensive premiums quoted.
Third party, fire and theft insurance, typically bought by young drivers, fell slightly, following eight successive quarterly rises.
Since 2004 average quoted comprehensive car insurance premiums have fallen by 3.6%, while the cost of non-comprehensive cover has risen by nearly 10% over the same period.
Kevin Sinclair, managing director of AA Insurance, said: "Rising costs are still failing to overcome downward pressure on car insurance premiums. Industry estimates suggest that this year, the cost of claims has already exceeded premium income by around 9% and this simply can't continue indefinitely.
"Premiums must rise sooner or later - and the later it happens, the greater the pain. It would be better for customers if the slight rise we have seen over the past quarter is the first sign of an upward trend."
The AA Index also reported that average quoted premiums for buildings insurance fell by 0.49%, while the cost of contents cover rose fractionally (0.15%), for the fourth quarter in succession.
Sinclair said: "Home premiums have shown little movement although there is serious industry concern about the longer term implications of global warming. But the industry has become very sophisticated in the way it identifies risk, using tools such as flood mapping and analysis of local crime levels to pinpoint the areas most at risk."
