Car Insurance Rates Rocket
Studies show 2010 was the worst year for car insurance price rises, indicating many will be struggling to keep on top of their motoring costs.
The last year saw prices rise by 38.2 percent, taking the average car insurance premium up to £695, the percentage increase being more than triple that of 2009, Confused showed.
Following the rise in fuel prices and the VAT hike, motorists are feeling the brunt of the economic downturn, possibly finding it hard to finance this expense.
“The rise in Insurance Premium Tax and rising fuel costs will continue to challenge people financially,” said Will Thomas, Confused’s head of motoring.
“It seems there is no light at the end of the tunnel just yet.”
Prepaid Credit Cards to Help Budget Motoring Costs
If you are struggling with the recent VAT rise, high car insurance rates and worrying about how you will manage the impending rise in the Bank of England’s base rate, increasing your mortgage payments, consider using a prepaid credit card.
The current average car insurance premium is now nearly £200 more than it was this time last year, and in this time more people have been made unemployed and those with jobs are on the whole experiencing pay freezes.
This begs the question of where the nation is supposed to find this money to pay for growing bills.
A prepaid credit card can aid budgeting and prevent overspending in areas of your life which are not essential.
If you keep within budget then it is easier to be able to pay monthly bills on time and even have some left over to save for the future.
Once the card user has loaded their funds onto the card they can use it to make everyday purchases, either in retail shops or online, with the knowledge that they will not unknowingly dip into their overdraft.