Car Insurance Increases Three Times Higher Than Inflation
Motor vehicle owners have been hit with rising fuel prices for a number of years, but it has now been revealed that the price of car insurance, not necessarily including extended auto warranties, has also been rising dramatically as well.
There has been an increase of as much as 15% in the cost of car insurance premiums, with the average comprehensive premium having risen by no less than £128.71 to £971.40 over the space of a year, a recent report from the AA claims. In a different report, the RAA has revealed that it currently costs an average of about £1,556 per annum more than would have been the case five years ago, to own and run a motor vehicle. All together this adds up to rises that are considerably over the current inflation of 0.5% and presents the United Kingdom's already struggling drivers with even more challenges.
The increase in insurance premiums is following a trend that was set by the price of fuel, which still remains the largest cost that is faced by drivers. The average motorist is now spending an additional £160 on fuel per annum, which represents a rise of 12% in the space of just one year. Adding to the headaches at the fuel pumps is a similar rise in the cost of insurance, with insurers passing on the increased price of legal costs, fraud and accidents that involve drivers who are uninsured.
published: 01/02/2012 17:00:01