Cheap car insurance more vital than ever

Wednesday, 13 July 2011

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Cheap car insurance is likely to be even more important to the swathe of customers facing higher fuel prices.

Petrol prices increased by 27 per cent in 2010, coupled with 18 per cent price rises for diesel, according to research by the Institute of Advanced Motorists (IAM).

Motor insurance spending, added to other costs, are more than ten times greater than the amount spent by the government on roads, using tax money raised through fuel duty and VAT, the institute indicates.

This is despite the percentage of tax paid at the pump rising to 75 per cent in 2000.

IAM director of policy and research Neil Greig indicated that using so little on road upkeep is "plainly unfair".

He noted that potholes and other hazards resulting from underinvestment in Britain's roads are posing a threat to car tyres, wheel, steering and suspension - all elements that may require a car insurance claim for repair if damaged.

Mr Greig added: "Cuts are clearly going to have an impact on transport investment, but as more roads become more potholed and dangerous, spending on infrastructure now will save money in the long-term."

Copyright Baubridge Ltd

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