Cash-strapped consumers have been dealt another blow as they attempt to gain control of their finances with news that car insurance premiums are continuing to rise.
Research from AA insurance reveals that comprehensive car insurance premiums have risen by 2.4% in the last three months, while third-party, fire and theft cover rose by 1.4%.
The average annual comprehensive car insurance bill now stands at a staggering £629.04 according to the insurer, and the rise is being blamed on a 10% increase in personal injury claims and a rise in the cost of damage repairs.
Improved safety measures mean that you are now far less likely to be killed in a car accident – however, this in turn increases your chances of making a claim and has led to a rise in car insurance premiums.
It’s the latest in a long line of discouraging financial news for consumers who have already seen mortgage rates rise after a succession of base rate hikes, loan rates increase following the credit-crunch and most recently a rise in energy bills due to a hike in wholesale gas prices.
However, all is not lost and drivers are urged to follow some simple steps to cut their car insurance bills.
The most important measure is to take a thorough search of the marketplace when your car insurance is up for renewal.