Safety doesn't come cheap

Advances in technology, which have lead to car airbags becoming common place and crumple zones keeping motorists safer, have also lead to car insurance premiums becoming more expensive.

Since April 2006, third party, fire and theft premiums have risen by 1.4 per cent to an average of £628.60 and comprehensive motor insurance has risen, on average, by 2.4 per cent to leave premiums standing at an average £629.04 per annum.

This is disappointing after motorists have been hit by rises in oil prices and duty adjustments. Caravan owners have to use vehicles that produce efficient engine torque to ensure safe towing. These tend to be the ones attracting highest road fund licence payments too.

John Close, insurer relations director at the AA, explains: "The cost of repairing accident damage is also increasing at about 5 per cent per year, as modern cars are built with greater crumple zones, expensive secondary safety systems (such as airbags), incorporate 'exotic' lightweight materials and thus cost more to repair.

"The irony of this is that you are much less likely to be killed in a serious accident - and are thus more likely to make a personal injury claim, the cost of which will ultimately find its way to car insurance premiums."

The only news which might reduce premiums is that throughout the past two years over 200,000 uninsured vehicles have been impounded, reducing the number of accidents involving illegal motorists by 5.8 per cent. This represents a saving of up to £30 per premium for honest drivers.

30/01/2008 16:33:15