Sunday 23rd of January 2011
Those already deep in the red and struggling with mounting debts may find insurance premium rises are contributing to their financial woe and causing them to pose individual voluntary arrangement questions.
The AA's British Insurance Premium Index has shown car insurance premiums leapt by a further 6.4 per cent in the last three months of 2010.
It means an extra £51 is added on to the cost for those paying for a typical annual comprehensive car insurance policy.
Moreover, the normal price of an average buildings policy escalated by £10 to reach £143.
Director of AA Insurance Simon Douglas said: "There has been no let-up in premium increases as insurers struggle against losses from 2009, when for every £100 taken in premiums, £123 was being paid out in claims."
It comes after recent research from Moneysuprmarket.com found many motorists are changing their driving habits to combat the escalating cost of fuel.
By Ashley Littley
