Between July And September Such Insurance Was Up By 35 Per Cent

Category: Finance, Personal Finance.

Homeowners and motorists alike may be due to come under more difficulty in handling their money, it has been suggested.

According to the firm, the typical home buildings insurance policy surged by some three per cent during the third quarter of 2007( between July and September) up to 215 pounds 51p. The news comes as research carried out by the AA in its latest British Insurance Premium Index has shown a rise in both home and car insurance costs over recent months- an increase partially attributed to the flooding seen across the country during the summer. This compares with a decrease of 89 per cent recorded during the second quarter of this year, where average cover stood at 209 pounds 23p. The cost of home contents insurance cover has also witnessed growth over the last quarter, as the typical quote is now valued at 149 pounds 99p- a rise of 29 per cent. Overall, premiums have surged by 13 per cent from the same time in 2006- a rise which could well put pressure on consumers capacity to make payments on other demands on their finances such as utility bills and loans. Meanwhile, a year- on- year rise of 64 per cent was posted. As over the last 12 months, fire and theft, third party cover has surged by 43 per cent.

However, drivers too could be set for further hardship in making loan repayments, as they have seen a notable increase in car insurance costs. Meanwhile, the average policy has surged by 57 per cent during the third quarter to stand at a record 1, 042 pounds 41p. Comprehensive cover also increased during the last quarter, though at a lower rate than third party, fire and theft. This compares to growth of 32 per cent to 1, 006 pounds 44p over the course of the previous three- month period. Between July and September such insurance was up by 35 per cent. Commenting on the figures, insurance relations director, John Close for the company, said: "The latest rises are in line with expectation. During the course of the last year, the premium has, however risen by some 96 per cent.

Car insurance premiums have followed an upward trend since the second quarter of 200The cost to the industry of personal injury claims and legal costs has been escalating rapidly while accident damage costs has also risen faster than premiums. And such a method of borrowing could also be advisable for those considering the purchase of a new car. In addition, recent flood claims have cost insurers an estimated 100 million pounds. " As a result, those worried that rising insurance costs may pressure their ability to meet demands on other areas of their spending may wish to consider applying for a low- rate personal loan. Following the launch of the new 57 registration plate last month, Halifax reported that September is often a prime time to apply for a loan so as to buy a new motor vehicle. However, head of the, Neil Chandler financial provider s unsecured personal loans division, advised consumers to take the time to search for the most competitively- priced finance deal available.