Car insurance holders 'were hit by rising fuel prices before recent hike'

Friday, 04 February 2011

Car insurance policyholders were being affected by rising fuel prices even before the recent hike, new data has revealed.

Since 1990, prices for fuel have increased by around two-thirds, according to data from the Institute of Advanced Motorists (IAM).

Between 2007 and 2008, motor insurance holders' overall spend on driving rose by six per cent, the data showed.

Neil Greig, IAM director of policy and research, said: "With fuel prices rising at the fastest rates for ten years, motorists will be wondering when these increases will stop.

"Competitive car manufacturers and a more efficient garage trade have delivered lower overall motoring costs but these gains are being all but erased by higher fuel and insurance costs."

Recently, chancellor George Osborne told the BBC the government was considering scrapping the proposed April fuel duty hike.

Mr Osborne added that the coalition was considering introducing a fuel stabiliser in a bid to try and "protect people from the effects" of fuel duty rises.

Posted by Rick Malone

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