Car insurance hikes ‘could lead to debt worries’

Car insurance prices have risen in the first quarter of 2010, which could result in debt concerns for some.

Figures released in the Confused.com and EMB Car Insurance Price Index have revealed the costs to have elevated by 4.3 per cent in this time.

As a result of this hike, annual increases have swelled to 14.3 per cent since April 2009.

Simon Lamble, product director at the website, commented on the statistics.

He said: “These figures come from over 13 million real quotes on Confused.com, so they give a true barometer of the state of the market.”

The findings showed that annual increases for 21 to 35-year-olds exceeded the market average and that 21 to 30-year-old females have been hit the hardest.

Research recently carried out by Admiral found distances covered by motorists to have risen by 4.5 per cent since 2000 – despite individuals being encouraged to drive less.

By Joe Shervin