Car insurance prices soar

Tuesday, 12 August 2008

Motorists have been dealt another blow as car insurance costs have reached record levels, new figures have revealed.

Car insurance premiums have risen by almost 6 per cent between July 2007 and June 2008 – with the average annual car insurance bill now costing £514.36, according to figures released by Sainsbury’s Car Insurance.

It is the first time that the average premium has exceeded £500 since Sainsbury’s began compiling figures. Worst hit are motorists aged over 65, who saw their average insurance quote grow from £334.65 to £368.09, equivalent to a rise of 10 per cent. Drivers under 25 saw their premiums increase by 2.47 per cent, although this age group still pays the most for their insurance with an average cost of £1,249. “Given that car insurance premiums are rising and the cost of driving is at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance”, said Joanne Mallon, Sainsbury’s Car Insurance manager. Rising costs in personal injury claims, car repairs and the large number of uninsured drivers were all to blame for the increases, the report added.

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Andrew said:

'Rising costs in per...
'Rising costs in personal injury claims, car repairs and the large number of uninsured drivers were all to blame for the increases, the report added'. Hardly surprising with the personal injury claims now we're in a 'blame' culture. Rising car repair costs?? Most accident repair centres would argue this one because rising labour and materials costs are not something they benefit from (as well as supplying courtesey cars foc!)As regards to the 'rising number' of uninsured motorists...is it a fact that there are more uninsured drivers around or is it a case that more are caught nowadays because of number plate recognition technology? What the 'report' doesn't mention of course is the rising profits accross the insurance industry. It seems to me that if you are a responsible law abiding motorist, you're an easy target and they (the insurance industry) have you by the nuts! If premiums doubled over the next few months, we wouldn't like it, but we'd pay in the end unless of course we all drove around uninsured which would only make matters worse! Corporate greed strikes again..not happy with the already significant margins, they want more and way above the rate of inflation. It's becoming more understandable as to why these low-life's drive around uninsured and rising costs will no doubt add to the growing number as the average person seems to think its their god given right to have a car whatever the consequencies.