Debt solutions may be needed to combat rise in insurance premiums
Debt solutions may be needed to combat rise in insurance premiums
Wednesday 27th January 2010
New research by Consumer Intelligence indicates that motorists renewing car insurance policies face the largest annual hikes ever recorded. The average premium is currently £564.69 - up by 19.6 per cent from the same time last year.
British motorists can collectively expect to face a car insurance bill that has increased by around £2.1 billion in the last 12 months, states the report.
Those aged between 17 and 24 have typically seen their annual insurance policy go from £1,275.60 in January 2009 to £1,489.44 by December 2009.
Neil Greig, director of policy and research at the Institute of Advanced Motorists, said motorists could help combat the reported rise by buying a car in a lower insurance bracket, and fitting a car alarm.
"Do things that make it less easy to steal. Unfortunately most of the cost still comes down to your gender, age, type of car and where you live that are the biggest determinants - little of which we can do much about," he said.
Mr Greig said firms may also impose tighter restrictions around making a claim, at the least becoming more stringent on checking claims that could be fraudulent.
According to AA Insurance, the key factors fuelling premium increases are a rise in personal injury claims and legal costs, fraud, car thefts, and insurance underwriting losses.
Personal injury claims and associated legal costs topped £9.6 billion last year, nearly half of which was legal costs, states the organisation.
Fraud alone cost the industry £1.9 billion - equivalent to £44 for every household's insurance costs.
News article brought to you be Debt1 - Confidential Advice for Managing Debts
Related News
Support saving and debt management, group urges - 26/01/10
People committing to saving and debt management plans should be supported, a new consumer action group has claimed
People committing to saving and debt management plans should be supported, a new consumer action group has claimed
Debt management could be needed to soften deep impact of recession - 26/01/10
People still out of work may require debt management help, with new figures suggesting the impact of the recession is becoming more widespread
People still out of work may require debt management help, with new figures suggesting the impact of the recession is becoming more widespread
Debt management plans reflect consumer vigilance - 25/01/10
More UK consumers are committing to debt management plans, as personal finance concerns mount in the current economic climate
More UK consumers are committing to debt management plans, as personal finance concerns mount in the current economic climate
Recovery signs positive for those relying on debt management - 22/01/10
People requiring debt management to help control their mortgages may soon receive some welcome relief, according to one industry expert
People requiring debt management to help control their mortgages may soon receive some welcome relief, according to one industry expert
Move away from borrowing and commit to debt management in 2010 - 21/01/10
Debt management may be needed to help people control their finances, with one commentator advising consumers to save instead of borrowing to fund heavy spending
Debt management may be needed to help people control their finances, with one commentator advising consumers to save instead of borrowing to fund heavy spending
News Article Search
Quick Apply
News Archive