Admiral car insurance has warned car drivers that they could see their premiums 5 percent higher by the end of this year.
In the first half of the year insurance premiums have risen by around 2.5 percent according to data collated by Admiral, with a similar level of increase expected in the second half of the year. On the back of all the other price rises that are hitting consumers there appears to be no escape from rising costs.
What seems to be happening is that the cost of car insurance is going up even though the number of claims is relatively unchanged. Admiral suggest that it may be the increasing cost of repairs that is forcing premiums up.
According to information coming from AA Insurance the usual Bank Holiday trips out are going to be curtailed somewhat this year due to the high cost of fuel.
A poll was carried out by AA Insurance from which it showed that 56 percent of drivers said they would not be heading out over the Bank Holiday weekend, with just under a quarter of those quoting petrol costs as the main reason. Compared with this time last year a litre of unleaded has gone up from 95.4 to 114.3 pence.
An AA Insurance representative commented that it was quite clear how people in the UK are feeling the squeeze and so are cutting down on car journeys, especially noticeable during a Bank Holiday weekend such as this.
Direct Line, a leading provider of car insurance, has asked that the new careless driving law should also encompass those drivers who are uninsured.
The new law, which came into force today, means drivers can be charged with death by careless driving, with a maximum penalty of 5 years in jail. Drivers who cause death through driving without car insurance, having no licence or having been disqualified face up to two years in jail according to Direct Line.
A spokeswoman from Direct Line felt that this situation should be reviewed as a matter of urgency since it appears somewhat unfair that the person who is breaking more laws gets a lesser sentence than the more law abiding one.
