Debt management may be needed by beleaguered motorists
Debt management may be needed by beleaguered motorists
- Wednesday, 27 January 2010Motorists may encounter
debt problems following the largest annual hikes ever recorded for renewing car insurance policies.
A new study by independent marketing firm Consumer Intelligence reveals the average premium is now £564.69, representing a 19.6 per cent increase from January 2009.
Motorists can now expect to collectively face a car insurance bill that has increased by as much as £2.1 billion in the last year, according to the report.
Director of policy and research at the Institute of Advanced Motorists Neil Greig said the price hikes were due to a "combination of factors".
"The cost of claims is rising all the time due to these no-win, no-fee claims. People also claim for things they didn't use to," he said.
"In general the cost is just going up in the industry and they are making very big profits at the moment."
Mr Greig said insurance firms were also likely to become more stringent on checking false claims, and said those with speeding convictions could face much higher premiums.
New research by moneysupermarket.com found that motorists convicted of speeding could pay almost double in insurance premiums.

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