Car Insurance Premiums To Hit Consumers As Credit Crunch Continues

Posted by admin

August 5, 2008

For the first time in 7 years motorists could be facing record car insurance premiums reports the Daily Mail. As if costs weren’t high enough!

According to Admiral Car Insurance, one of the UK’s top insurers with over 1.5 million customers, warnings of the possibility that premiums will rise faster than claims is very real as the credit crunch continues to put pressure on families’ already stretched budgets.

The Daily Mail says, “The average cost of comprehensive motor insurance has topped £700 for the first time, according to the AA.

It said the cost is now £702.47, nearly 6 per cent higher than a year earlier and well above the rate of inflation.

The increasing cost of car repairs – with models now much more technically sophisticated – and the rise in ‘ambulance-chasing’ personal injury claims are blamed for the rise. The figures are further bad news for motorists already struggling to meet rising fuel costs.”

The AA website also mention young drivers as among those to be hardest hit. Citing the AA’s director of insurance, Simon Douglas, “Car insurance costs are spiralling. While the number of casualties on Britain’s roads is falling the cost of accidents is rising and young drivers are taking an increasing share of the toll.”

Have you experienced a rise in your car insurance premium? Maybe it’s time to consider shopping around with some of the more popular price comparison sites, which is highly recommended. You CAN save money on your car insurance and the little bit of effort involved is going to be well worth your time. Car insurance companies are forced to offer competitive rates as more people turn to price comparison sites for the best deals.

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