Huge rises in car insurance premiums for city motorists

(21/12/2009)

Car insurance premiums have seen a steep 14% increase in the past year according to the AA British Insurance Premium Index. This is the highest rate increase on record and average premiums for comprehensive motor cover jumped by 5.6% in the third quarter of the year, the biggest quarterly increase since the AA first started monitoring the market in 1994. A City Car Club survey showed that mostly this increase in premiums had been felt by city motorists rather than by those in rural areas.

UK city motorists have seen huge rises in their car insurance premiums during 2009 according to a recent survey by City Car Club. The statistics gathered by the UK pay-as-you-go car club showed that premiums had risen by 14% in the past year and that most of the worst rises had been felt by city motorists. The main reason for the huge rises in cities was down to uninsured motorists and the survey showed the top ten worst places in the UK for car insurance.

Oldham £392.28
Bradford £371.07
Liverpool £324.63
Bolton £309.57
Bury £302.67
Manchester £280.16
London £273.23
Birmingham £268.11
Leeds £257.42
Wigan £249.07

Premiums were calculated in each case for a 40-year-old man with fully comprehensive insurance, driving 4,000 miles a year in a Ford Fiesta 07 plate worth £5,000 with five years no claims and were taken from the cheapest insurer on a range of comparison websites.

Oldham city centre has the highest car insurance premiums in the country with an average of £392.28 per annum, Bradford was 2nd with £371.07, Liverpool was third with £324.63, Bolton 4th on £309.57, Bury 5th with £302.67, Manchester sixth with £280.16, London was seventh with £273.23, Birmingham 8th with £268.11, Leeds ninth with £257.42 and Wigan tenth on £249.07.

As a result of the recent rises City Car Club membership has shot up in all it's 14 cities across the UK, which are Edinburgh, Bradford, Huddersfield, Leeds, Liverpool, Manchester, Sheffield, York, Birmingham, London, Bath, Brighton, Bristol, Norwich and Southampton. Annual premiums are all covered in the £50 annual fee, or £30 in the case of business users.

As City Car Club CEO James Finlayson explains, "We are getting more and more new members joining because they don't want to pay extortionate insurance premiums any more. During the past six months, it has become one of the most common reasons people mention when joining the club along with other spiraling motoring costs."

City Car Club operates the UK's largest pay-as-you-go car club network, with over 500 cars across 14 UK cities, and a membership base of 16,000. It provides a cheaper and greener alternative to owning a car. The City Cars, which are conveniently located across city centres, can be booked for as little as 30 minutes or as long as needed, and the hourly rental rates start from under a fiver - inclusive of everything from insurance to cleaning.

Using the club is simple and bookings can be made online in advance or right at the last minute at www.citycarclub.co.uk or over the phone on 0845 330 1234.

The club saves motorists around £1,800-a-year compared with owning a car because club members no longer have to pay for insurance, maintenance, depreciation, cleaning costs and even petrol (50 miles petrol is free every day).

Related categories:  Car insurance 

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