Competition slows rate of rise for UK car insurance premiums - survey

(Reuters) - British car insurance premiums rose less than expected in the three months to end-June compared with the previous quarter, as competition pressures kept growth in check, the AA (AAAA.L) said on Saturday.

The average quote for an annual comprehensive car insurance policy was 568.48 pounds ($751.81) in the second quarter, a rise of 2.3 percent over the first quarter and 17.2 percent over a year earlier, the British recovery service said.

Companies such as Aviva (AV.L), Direct Line (DLGD.L) and RSA (RSA.L) are among those operating in the highly competitive car insurance market.

Apart from a slump seen in the first quarter, premiums have been trending upwards due to rising costs of crash repairs for increasingly complex vehicles, high levels of false claims for whiplash injuries and a rise in uninsured driving.

($1 = 0.7561 pounds)

(Reporting by Esha Vaish in Bengaluru; editing by Adrian Croft)