Car insurance policy and premium costs could be slashed in half by doing just one thingUK drivers can save hundreds of pounds a year by selecting fully comprehensive car insurance instead of a third party policy.
It is generally perceived that fully comprehensive insurance is more expensive than a third party, fire and theft policy.
The driving group set to make the biggest saving from this knowledge are male drivers between the ages of 17-24, who carry the biggest insurance premiums.
However, new research by The Sun and Confused.com has revealed that average premiums can be slashed by up to £633 per year.
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Car insurance in UK hits record high as tax rate on premiums increases
“One of the most prominent causes of these rises is the doubling of insurance premium tax over the past two years.
The steep rise in the average car insurance premium comes despite efforts to tackle the ballooning costs of whiplash payouts.
The average cost of car insurance will hit a record high as a higher rate of tax on premiums comes into effect, pushing up prices even further.
But opponents said the change will add up to £75 to car insurance premiums, as well as landing the NHS with an additional annual £1bn bill.
The rate of insurance premium Tax (IPT) will rise on Thursday from 10% to 12%, adding about £15 to the typical policy.
Car insurance premiums jump 14pc in a year to £800
The average cost of insuring a car is expected to top £800 for the first time ever next month, as a range of factors come together to drive premiums higher.
Repeated increases in insurance premium tax introduced by George Osborne are one factor.
The average annual premium has risen by £100 – or 14pc – over the past year and £200 over the past two years.
The rate has increased three times since 2014 – doubling from 6pc to 12pc, with the cost being passed directly on to consumers.
Analysts say the steep increase in price will continue.
collected by :Olivia Mathio