Record rise in car insurance costs
22.10.09
The expenditure of car insurance is rising at its fastest rate on record, research reveals today.
Common premiums for comprehensive motor cover jumped by 5.6% in the three months to the end of September, the biggest increase since the AA first started monitoring the exchange in 1994 (see the Car Insurance guide).
The annual rate at which the price of cover is rising also hit a new high of 14%.
Yet you can take steps to lambaste the cost. By following the MoneySavingExpert.com system, a grandmother from Kent paid just 96p for a year's car insurance (see the 96p car sufficient for MSE News story).
Some have also been PAID up to £67 to take out home insurance (see the Home Insurance guide).
The AA says the norm cost of comprehensive car insurance had risen from £721 a year ago to £821 now.
It warns further increases are proper, as car insurers are currently paying out an estimated £110 in claims and costs for every &beat out;100 received in premiums.
Source: Money Saving Expert