The rising cost of car insurance has meant that families will have to pay £843 a year, just for their car insurance. This adds further strain on families who are already under pressure to cope with the sky rocketing cost of living.
The motorists in the North of England are the ones who are the most severely affected by the rise in costs. They now have to pay annual premiums of nearly £1,400. The rate at which car insurance is rising is more than six times the current rate of inflation. The Consumer Price Index, which is the government’s preferred measure of inflation, has now reached 4.5 per cent.
A research, which was done by a car insurance comparison website, has shown that motorists in the major metropolitan cities have witnessed some of the biggest increases of car insurance rates, with drivers in Oldham and Bradford seeing a twenty eight per cent rise in the cost of comprehensive cover, with premiums reaching £1,437 and £1,394 in that order. Drivers in the cities of Liverpool and Manchester saw their premiums rise by twenty seven per cent. The head of a car insurance comparison website was quoted as saying, “These sudden increases are quite worrying as many drivers are being hit with more than 25 per cent increases. Car owners in the affected areas are going to have to be as savvy as ever to find the cheapest deals.”
More or less fifty per cent of the average car insurance policy now goes to cover up the cost of whip lash claims, fraud, and legal fees in addition to the tax. For this reason, the motor insurance industry has called for a tighter regulation of personal injury lawyers and claims management firms.