Car insurance news
17/09/2009
Motoring costs up by hundreds of pounds as fuel rises
The rising cost of motoring is now making the news with fuel duty rising two pence per litre and research showing drivers are looking for cheap car insurance more and more often.
Petrol prices have been forced up by the British government - and this will be followed at the end of this financial year with VAT moving back up to 17.5 per cent from 15 per cent.
Motor insurance quotes for cars with small engines have risen by 22 per cent, according to one insurer, indicating people are trying to switch to less expensive, more economical models.
With fuel costs already up by almost 23 per cent since January 2009, prices at the pumps are now forecast to reach £1.10 per litre within weeks and £1.20 by December. Fuel increases alone are putting up the annual cost of motoring for most drivers by many hundreds of pounds.
A spokesman for Hoot cheap car insurance services for young drivers said, "Once again, the motorist is being bashed and nobody in government or the oil business seems at all bothered - quite the opposite, in fact."
