Drivers have already seen their petrol prices go up by one pence per litre in October and fuel duty is set to go up again in the new year when VAT jumps from 17.5% to 20%.

certainly those petrol rises will see the overall cost of everything increase by more than 2.5% as the extra cost of fuel is passed down to the consumer.

And things don’t stop there for the British driver either. AA figures show that the average insurance premium has gone up more than 30% over the past year and set to rise even more as more and more personal injury claims are lodged which win against insurance companies. Some insurers claim that a large proportion of these claims are bogus sighting whiplash injuries as hard to disprove, their immediate assumption here being that if it’s hard to disprove then claimants are fraudulent. one day car insurance

companies will be able to use technology to assess fairly and without prejudice the not only the risk a particular driver represents but also whether a claimant is exaggerating their claim but until then they have to make payment and our premiums remain high.

For the short term car insurance looks set to get more expensive, not cheaper as the recession bites deeper still, unless you’re one who believes that cutting spending and increasing tax is going to rescue the economy. (Small clue, this economic policy has never worked in any arena so far and there’s no reason to believe things will be different this time.) Insurers claim that they paid out £9.4b last year while they made £9.9b which means that the whole industry made a profit of £0.5b or £500,000,000 which when you consider the number of insurance companies there are out there doesn’t sound like enough even to cover the wages bill.

These problems might only be temporary car insurance, being a legal requirement for all motorists is always going to be there to make money for those who prepared to make the occasional loss when they can see the bigger picture and the long term gain.