Car insurance jumps by 39.3% which may impact on debt problems
Car insurance jumps by 39.3% which may impact on debt problems
- Friday, 15 October 2010Drivers living with
debt problems should shop around for the best deals on car insurance as it has increased by 39.3 per cent in the last 12 months.
According to the Automobile Association's (AA) Shoparound Index, which is based on the cheapest three quotes, car insurance increased to £792.
This is the largest annual jump experienced and in the last quarter alone, prices increased by 11.5 per cent, which means those living with
debt problems will have to find more money to pay for their cover.
The AA revealed that young drivers, especially men under the age of 25, have faced the greatest hike in car insurance prices as they are the ones most likely to be injured or killed in an accident.
Car insurance for those aged between 17 and 22 has increased by 51 per cent in the last year, with women paying £1,400 and men paying £2,500 annually.
Simon Douglas, director of AA insurance, said: "Five years ago we warned that sharp premium inflation would be the result of this competition but recession has added to the pain."
The University of Cardiff recently suggested that young drivers should be banned from driving at night and from carrying passengers of a similar age, in order to save lives.

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