The cost of motoring in the UK is set to rise, predicted RAC Insure, as it released it Motoring Index for 2004.
It said insurance premiums amounted to only a small proportion of the total cost of running a car, but it said the rising cost of claims would have an impact on many drivers’ premiums, especially those with luxury vehicles.
In addition, with three million sets of penalty points being added to driving licenses this year, some insurance companies will choose to increase premiums for motorists with points on their licenses, said RAC Insure.
The Motoring Index revealed that the most expensive car to insure, of those included in the premium, was a BMW 7 Series, costing £25.97 per week in premiums.
RAC Insure added that rising fuel prices and an increase in the cost of an MOT would also contribute to the rising cost of motoring.
The average cost of running a car has remained consistently high at £438 per month (25% of the average Brit’s household income) and almost £20 more than the average monthly mortgage payment of around £417, said RAC Insure.
