Car insurance premiums show record rise
Despite the fact that the UK is suffering from a full-blown recession with money tighter than ever before, it seems as though UK car insurance companies are pushing premiums higher and higher. A report by the AA confirms that UK car insurance premiums rose by 3.5% over the last three months and a massive 11% over last year. When you consider that inflation has fallen towards zero over the last few months it is difficult to understand why charges are going up.
However, a further look at the figures suggests that an increase in theft, fraud, personal injury claims and legal expenses are having a greater and greater effect on the industry. The cumulative impact of legal expenses is set to hit just under £11 billion by 2012, a figure which will have to be met by UK car owners.
It is also interesting to see that the cost of whiplash injuries alone in UK represents a massive £66 on each and every car insurance policy sold. With the average comprehensive car insurance policy now around £778 and third party fire and theft insurance now just under £1000, keeping your car on the road has never been more expensive. Is it really a surprise that more and more people are going without car insurance?
Share this..
Related stories
Over 50s life insurance explained
Here at Financialadvice.co.uk, we understand how daunting it can be choosing how to save for your future, or the future of your loved ones. Our fully qualified, in house financial adviser, Andrew Gurton, has been talking to us about everything we wanted to know about over 50’s life insurance, from how it works to how it differs from saving plans.
What is over 50’s life insurance?
Read More
How can the UK run short of gas?
Despite the fact that the UK government has rushed to allay fears that UK gas supplies are in danger, we are set to see further companies suffer as prices continue to rise and supplies continue to fall. Only yesterday we saw 94 companies in the North West and Midlands have their gas supplies cut off due to a massive spike in the price of gas and ever growing concerns about Norwegian supplies. So h...
Read MoreHigh street sales dip by 3.9% due to recent cold weather
18/04/2016 UK high street sales have reported a 3.9% decrease during March compared to the previous year as online shopping proves to be a popular alternative during the recent cold snap. The latest figures have shown that the numbers of shoppers hitting the high street has decreased with footfall falling by 2.7%, the British retail Consortium (BRC) and Springboard have said. In response...
Read MoreRoyal Bank of Scotland increases credit card charges
Despite promises from the UK government that banks, were UK taxpayers hold significant stakes, would improve their terms for credit in the short to medium term, this does not appear to be the case at Royal Bank of Scotland. It's been revealed that NatWest (part of the Royal Bank of Scotland group) and Royal Bank of Scotland have increased their credit card purchase rates from 16.9% to 19.9%. They...
Read MoreBT under pressure after changing evening call times
At a time when the UK telecom market is more competitive than ever before it seems a rather strange moment for British Telecom to risk the wrath of customers by changing the times at which UK customers can make free evening phone calls. The company is changing its "evening" start time from 6 PM to 7 PM which will impact on many of the company's 10 million customers. While customers will only ne...
Read More