The quarterly AA Insurance review of car insurance premiums has found that costs are on the rise again, with the average fully comprehensive policy now costing GBP700.
There has been an increase of over GBP20 compared with the previous quarter said AA Insurance and it is young driver car insurance that has seen the biggest increase, up by more than twice the overall average – GBP45. Along with all the other price rises consumers are seeing this latest one just reiterates how the cost of living is spiralling ever higher.
The best advice upon seeing these results is to shop around said AA Insurance. Look at different car insurance providers, having an increased voluntary excess or removing some of the features that are not needed. Following some of these steps may help keep that motor insurance bill down and save money.
A study carried out by Sainsburys Bank looking at data for the last 12 months has shown an increase in car insurance cover of 5.8 percent.
Sainsburys Bank has been studying the data since 2005 and this is the first time that the average annual premium has gone over the GBP500 mark, standing currently at GBP514. Commenting on this increased cost a spokesperson explained that premiums take into account both the cost of vehicle repair and personal injury and as these increase so premiums have to go up to cover those costs.
Car insurance premiums are also affected by the number of claims, something Sainsburys Bank would like to see reduce. They are therefore asking drivers to take more care behind the wheel, avoiding dangerous activities in order to have less accidents which will then lead to a reduction in insurance costs.
Direct Line are asking all van owners to make sure they have the correct insurance cover otherwise they could find themselves out of pocket in the case of a claim.
Most van drivers use their vehicles for commercial purposes so it is vital that they get the correct van insurance that covers business use. Another aspect that many drivers of vans fail to appreciate is that it is classified as a place of work and so the smoking ban is in force. Drivers can be fined up to GBP2,500 for this warn Direct Line.
Van insurance has become much more competitive in recent years, with companies such as Direct Line recognising the increased demand for cover and therefore developing their products accordingly.
