Increasing Car Insurance Rates, Fuel Prices and their Effects

cheema | November 29, 2011 | 1 Comment More

Economic Meltdown throughout the world has affected each and every sector of an economy. Increasing fuel prices have sent inflation sky-rocketing and as a result the prices of each and everything under the sun have been increased, including the car insurance rates. So the increase in fuel prices and as a result Car insurance rates have sent the cost of motoring sky-high. To be exact, according to a leading motoring business entity, the cost of keeping a motor car has witnessed an increase of 14% over the period of last 12 months or so. If the data released by RAC is to be believed the average cost of keeping a motor card has increased to £128.64 per week. This is true for new as well as the old, used cars. The prices of new cars have increased more than 50% as compared to the prices of the year 2007. Car Insurance-Rates

So this increase in the overall cost of keeping a car can be contributed to many factors including two main reasons, increasing fuel prices and car insurance costs.

Similar is the case with the running cost of a car, which has increased by 13.2%. This increase of 13.2% in the running cost of a motor is due to increasing Car Finance and Depreciation costs, according to RAC. According to a leading organization dealing in motoring business and cheap insurance provider, if we take the factors of Car Finance and Depreciation cost out of the equation the costs have increased by 11.1% as compared to the cost in 2010.

Increasing Car Insurance Rates and Fuel Prices have resulted in increasing the overall cost of keeping and running a motor, to be precise as the Car Insurance Premium has increased by 14.38% as compared to the rates of previous year, which is mind-boggling increase, whereas the rising fuel prices, which have increased by 15% as compared to the prices of last year, have resulted in increasing the overall cost of keeping and running a motor by 12.27%, so all of the statistics and above discussion prove that the overall cost of keeping a motor has increased, due to increasing fuel prices and Car insurance rates. However, there can be many other reasons, but the above mentioned are the main reasons behind this increase.