Car and home insurance costs spike
Wednesday, 13 April 2011 03:14
Winter claims have pushed home insurance premiums up, reports the AA, while car insurance costs rose by their highest degree ever in the past year.
Home insurance cover is now at its most expensive ever after winter weather led to claims for burst pipes and other damage from ice and meltwater.
There is some good news here, however, as the AA had expected an even greater increase than the 13.6 per cent year-on-year change in buildings insurance that was actually recorded.
Simon Douglas, director of AA Insurance, says: "The record rises in fuel costs coupled with spiralling car insurance premiums is disappointing news and is making driving unaffordable for many - especially cash-strapped young drivers."
Young motorists in particular are likely to request third-party, fire and theft cover, but this has risen in cost by 82.1 per cent in the past year, with a 10.7 per cent increase in the first quarter of 2011 alone.
The AA points out that the harsh winters in recent years have taken their toll on the nation's roads too, leaving potholes that could cause further damage to cars and drive premiums still higher.
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