MONEY COMMENT
Car Insurance Up 100%
By Cliff D'Arcy
July 20, 2004
Every quarter, motoring association The AA produces its British Insurance Premium Index, which has tracked the cost of home and motor insurance since 1994. On the tenth anniversary of the Index, it's worth looking back to see what's changed over the last decade:
Insurance
- The cost of comprehensive motor insurance has almost doubled, rising by 86%. On the other hand, buildings and contents insurance has been static over the period: up under 1% over ten years.
- In July 1994, the average annual premium for comprehensive cover was £408. It is now £759. However, shopping around could reduce your premium by around a third. The AA's average 'shoparound' premium is £475, a tidy saving of £284.
- According to The AA, the average motor premium has dropped by 2% in the last quarter, thanks to a price war between several of the big players.
Cut your premium with a quote from our Insurance Centre.
Motoring costs
- The price of a litre of petrol has risen from 57p to 80p, an increase of two-fifths (40%).
- The cost of a typical family car has risen from £10,500 to £12,900, up almost a quarter (23%).
- The number of cars in the UK has climbed by a fifth (20%) from 23.8 million to 28.5 million. That's an extra 4.7 million cars stuck in jams!
- Vehicle Excise Duty (road tax) was a flat £135 in 1994. It now ranges between £55 and £165.
- There's been a 39% decrease in "thefts and attempted thefts of and from vehicles", from 4.3 million in 1993/94 to 2.63 million in 2002/03.
So, what can motorists expect over the next ten years? While insurance premiums are not expected to rise quite so steeply, we can look forward to more congestion charging and tolls, plus higher fuel prices, parking charges and driving fines. Yippee!
Other living costs
- According to the Halifax, the average home now costs 2½ times as much as it did ten years ago - £157,250 versus £62,750.
- The average Council Tax bill has more than doubled to £967 in 2004/05 from £473 in 1993/94 (up 104%).
- Domestic burglaries have almost halved to 974,000 from 1.79 million (down 46%).
Still, the cost of living hasn't affected its popularity, has it? So, if you'd like to chop your motoring bills, check out these articles:
