In a recent survey, drivers have named car insurance as their biggest cost concern as premiums are increasing at their fastest rate in five years.
Nearly half (46%) of the 1,714 drivers questioned for the RAC Report on Motoring noted that their insurance cost had increased on the previous year, compared with 34% who said the same in 2015.
The RAC said that industry data showed the average premium rose by 14% in the 12 months to March, increasing from £590 to £671 per year.Other notable findings
41% of motorists stated their car maintenance bills had increased, which is a slightly smaller proportion compared to 44% last year.
Only 30% said that their fuel spending had gone up, despite it generally being one of the biggest contributors to annual motoring costs. This figure is probably due to the fact that fuel prices are lower than they were last year.
These lower prices meant that only 7% of drivers in this year’s report listed fuel prices as their top concern, which is down from 10% year-on-year.
Insurance costs came third in the final motor concern standings, just behind the condition of local roads and other drivers using handheld devices when behind the wheel.What next?
With concerns surrounding car insurance prices ranking so highly with motorists, drivers are understandably eager to know whether the prices will continue to rise over the coming years.
The director of RAC Insurance, Mark Godfrey, has had his say on the results, saying the following:
"The cost of insurance has never ranked as highly among motorists' concerns in previous years' research for the Report on Motoring as it has this year, and neither has it featured as prominently in motorists' assessment of increased motoring costs.
"Insurance is, quite rightly, mandatory for anyone getting behind the wheel of a vehicle so increasing Insurance Premium Tax (IPT) is really another tax, like fuel duty, and is an unwelcome addition to the already considerable contribution made by motorists to the Treasury.
"With insurance premiums currently going up faster than they have at any other time in the last five years, we don't want annual increases in IPT to become a feature of the Chancellor's annual Budget and Autumn Statement. We would like an assurance from the Treasury that IPT will not be increased any further."
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