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Daily Insurance Industry News
Tuesday 25th of July 2017
November 17, 2009

Car insurance premiums up 23% in two years

by Gill Montia

Story link: Car insurance premiums up 23% in two years

Sainsbury’s Finance estimates that the annual cost of running a car has increased by around 11% when compared to 2007, with insurance the most significant element in the rise.

According to the research, the typical cost of insuring a car rose 13% in the 12 months to October 2009, having increased 23% since 2007, taking the average premium to £551.74.

Meanwhile, road tax is demanding an extra 8% from the average motorist and 22% when compared to two years ago.

However, fuel prices are slightly lower than in October 2008 with the average car owner shelling out around £1,266 per year to fill the tank.

Servicing costs are also estimated to have fallen marginally over the past year due to the deflationary effects of the recession.

Sainsbury’s therefore calculates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase a vehicle, is now around £2,338, or 11% more than in 2007.

 

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