Make 2011 the time to get a better credit card deal

Whilst many people in the UK are on poor credit card deals, with high rates of interest and little to nothing in the way of benefits, many fail to take any action such as switching to a more favourable credit card. However, with 2011 almost upon us now could be the time to act, and by doing this cardholders could enjoy far greater benefits or could enjoy paying far less – or even nothing – in interest.

At the start of 2011 new regulations will come in, which will see credit card providers having to make a number of changes to the way in which they operate in order to benefit consumers. This will include a new minimum payment system, which will ensure that cardholders are not left festering in debt indefinitely because of minimum repayments, and more importantly the need for card providers to apply repayments to more expensive debt rather than the cheapest debt, which could save consumers a small fortune in interest.

However, there are fears that these changes, which are due to come in soon, could result in credit card provider trying to bring in sneaky new charges and increase interest rates in order to recoup their losses, and some credit card holders could find themselves paying even more for their borrowing as a result of this.

Rather than just putting up with the way that credit card providers decide to change the account many cardholders could find that they can benefit hugely in terms of their finances by taking the time to find a more competitive deal on their credit card, which will help them to start the New Year in the way that they mean to go on – with streamlined finances and in a better financial position.

Whilst credit cards are not as easy to get as they once were, prior to the onset of the global financial crisis, it is possible to get a good deal on a credit card if you have a decent credit rating. The easiest way to do this is to get online and find a credit card that suits your needs, but which offers far better value for money than your existing card. You can then save money on the amount of interest that you pay, or if you do not tend to spread your repayments you could even opt for a rewards based credit card.

Tags: amount, personal finance, favourable credit card, Credit Cards, number, Business Finance, increase, minimum payment

Older consumers struggling to get travel cover

A recent report has highlighted how difficult it can be for older consumers to find affordable travel insurance cover, with many finding the cost of this cover too high to afford. Many older people aged sixty five and above find themselves in a difficult situation where they suddenly have more time to travel following retirement but then discover that their age is making it difficult or impossible to get insurance for their travel.

Figures have shown that the average cost of cover for someone in their thirties is under twenty pounds for a single trip cover policy. However, for someone that is eighty years of age the cost can be around five times that amount, and that’s only if the older traveller is fit and healthy. For those that have past and existing medical problems the cost can be too much to afford.

Older people often struggle to get travel insurance cover, and this is because insurance firms see them as a higher risk and a liability become of their age and frailty. The amount charged for travel insurance for someone aged sixty five can more than double for someone aged sixty six who is going to the same destination for the same period of time.

The amount of choice that older travellers have is also limited, as there are some firms that will not provide cover for anyone aged over sixty five. The cost and availability of travel insurance cover for older people has resulted in some people being unable to enjoy the plans to travel following retirement because they simply cannot afford the cost of the cover.

One industry official said: “It can be very difficult for people of retirement age to get affordable travel insurance cover, and it is vital that they take time to compare because some insurance firms will charge a fortune.”

Tags: travel, cost, amount, consumers, Types of insurance, industry official, finding, policy

Tighten your spending for next year

With all the uncertainty over the economy and job losses many people will be stressing over their finances and for many people sorting out their finances for the New Year will be a priority. It is always a good idea to start the New Year with a streamlined budget, as it means that you can focus on your finances and try to get them into some sort of order over the course of the year.

With this in mind it is a good idea to start now when it comes to trying to sort out your finances, and there are a few simple steps that you can take, which could help you to organise your finances more effectively, make your budget more manageable, and even reduce the amount of money that you pay each month.

The first step is to go through your finances with a fine toothcomb. You need to make a list of all of your income and all of your outgoings so that you know exactly what is going into your account and exactly what is coming out of it each month. This will allow you to see where you can make cutbacks and what changes you can make to benefit you in terms of your financial situation.

Many people have a variety of payment that they make for things that they do not even use, such as gym memberships even though they never get time to go, magazine subscriptions for magazines they no longer read, and various other payments that they may have forgotten about. Take the time to cancel anything like this, as it could mean big savings each month.

Once you have gone through your finances with a fine tooth comb it is time to see whether there is anything that you can reduce payments on by switching. Many people switch services such as their utilities, broadband, insurance, credit cards, and even mortgage in order to save money, and shopping around for a better deal could make a big difference to the amount that you have to pay out each month by reducing the cost.

Finally, look at any debt that you have and consider whether consolidation might reduce your repayments and get you a better deal. You could consolidate all of your debt such as credit cards, overdraft, and loans, into one, which would save you time and hassle each month and reduce your monthly repayment.

Tags: credit, uncertainty, broadband, amount, overdraft, fine, list

Ways to earn and save money online

Many of us are experiencing financial problems at present due to the difficult financial climate and the recession, and most of us want to find ways to try and improve out situations by savings more money or earning a little more. Read more

Tags: money saving tips, Household, earn money online, business, save money, exchange

How to Minimize Your Car Expenses

Having a vehicle is almost a necessity of life for most of us and one that costs us a lot of money, especially with the rising price of petrol. Along with having to pay for insurance and make the payments on the vehicle, you also have to perform regular maintenance, such as in purchasing new tires and having regular checkups performed on the engine. There are ways though that you can cut down on these costs and save yourself money. Read more

Tags: feel, careful driver, car expenses, cars, cheapest prices, amount, roof

Cash may run dry for those interested in scrapping their old cars

Following the budget last month, the Chancellor of the Exchequer, Alistair Darling, announced the launch of a car scrappage scheme. The scheme was designed to encourage motorists to get rid of older, environmentally unfriendly vehicles and buy new vehicles that were greener and more reliable. Read more

Tags: old cars, flagging motor industry, buying, amount, scrap old cars

CML said mortgage lending fell again in August

According to officials from the Council of Mortgage Lenders mortgage lending levels fell in August, with the value of mortgage lending having fallen by 12 percent compared to July and by 36 percent compared to August of the previous year. The total amount of new mortgage lending for the month came to just £21.8 billion. This was the lowest level of mortgage lending since 2005 and the lowest level of mortgage lending in August since 2002. Read more

Tags: mortgage lending, new mortgage lending, amount, council of mortgage lenders, long house prices, property transactions, industry, economics

Retired couples amass savings

Retired couples in the UK have average savings and assets to the value of £269,479, according to a survey.

The average figure for single pensioners was found to be £134,739, Prudential reports.

Despite retired people having amassed such substantial savings, the organisation states that only 17 per cent of pensioners have sought financial guidance from a professional adviser.

Gary Shaughnessy, Prudential’s managing director of retail life and pensions, expresses surprise at the amount of savings and investments held by the average pensioner.

He adds: “The average pensioner could substantially boost their retirement income simply by using their savings and assets in different ways and exploring other options such as equity release to deliver an income.”

A separate study revealed last week by Zurich Financial Services suggests that one in five of the overall population believe it is too expensive to see a financial adviser.

In addition, it found that only three out of ten single people stated they had sought professional financial guidance.

Tags: Social Issues, single people, Zurich Financial Services, adviser, ING Group, amount, cent, financial adviser.In addition

Finding the right bank account for your needs

For many people a bank account is just a bank account – somewhere to pay their salary in each month and from which to withdraw cash or write cheques. However, these days the world of banking is more competitive than ever and many of the popular banks now offer a choice of accounts and a range of perks and conveniences. In order to ensure that you get a bank account that will not only suit your needs but will make life easier and more convenient, there are a number of things to look out for. Read more

Tags: amount, facility, monthly bank charges, bank accounts, monthly bank, bank account tips, account, appeal

Are you looking to refinance your mortgage?

People in the UK have become far more savvy about finances over the years, and when it comes to mortgages many people have realized that there are some great deals out there that could save them a fortune in interest as well as reducing their monthly repayments. However, for many consumers simple apathy or misguided loyalty has resulted in them staying with the same mortgage provider through thick and thin without giving any thought to just how much they could save by simply refinancing the mortgage, whether with the same lender or with another one.
Read more

Tags: mind, amount, Real estate, refinance mortgage, loan, extra money

Alliance & Leicester launches new bond

Alliance & Leicester International has announced the launch of a new one-year fixed-rate bond, which the firm claims will meet the needs of its customers. Read more

Tags: existing alliance, interest rate, amount, building, escalator, savings bond, alliance and leicester bond, best rate

Shoppers choosing cash rather than credit

Consumers are cutting back on their credit card spending and increasingly using cash to pay for their purchases, it has been claimed.

A survey of 17,000 shops conducted by the British Retail Consortium (BRC) revealed that cash was used for 60 per cent of transactions last year, up from 54 per cent in 2006.

The BRC said this shows people are concerned about spending money they do not have and want to keep tight control of their finances.

Another issue raised by the BRC is the cost that credit card companies charge retailers, which is four times the amount of a cash transaction.

Consumers are forced to pay for the extra charges as retailers pass them on through increased prices.

“There should be a lower fixed fee per transaction which actually reflects the cost of processing, so new technology brings balanced benefits to retailers, consumers and banks,” said BRC director general Stephen Robertson.

Savings expert at Scottish Widows, Anne Young, recently said that young people get into trouble due to the “proliferation of credit” that is now available to them, adding that more should be done to educate people on managing their credit.

Tags: Business Finance, online shopping, Payment systems, credit, Financial services, young people, scottish widows, amount

Additional insurance fees cost drivers £333m

Motorists are being charged an average fee of £22 for amending simple details on their car insurance policy, according to new research.

Findings from uSwitch showed that with 14 million consumers making changes every year, drivers are collectively £333 million out of pocket each year.

The company states there is no legislation in place to protect consumers from excessive charges and fees, something which it says needs rectifying.

Ashton Berkhauer, insurance expert at uSwitch.com, said that consumers need to know where they stand and the easiest way to do this is for the amount providers charge to be consistent across the insurance industry.

“This would make it clearer for consumers and bring transparency to the market. Currently, making an adjustment to your policy can cost you from £0 to £25 and the price for cancelling a policy mid-term can be unlimited,” he continued.

Meanwhile, further research from the company shows that extending insurance to cover the duration of a trip abroad can cost motorists up to £510.

Tags: car insurance policy, trip, additional insurance, excessive charges, amount, com, fee, Ashton Berkhauer

Ethical consumer investment increases by 18% says survey

Up to 85 per cent of consumers expected to put their savings into an individual savings account (Isa) before April will use an ethical investment scheme new research claims

According to a survey from the Co-operative, this figure has increased from the 67 per cent who said they would invest ethically in the same survey last year.

The latest results show that nearly 80 per cent of respondents believe that ‘green’ investments can perform as well, if not better than mainstream markets.

Zack Hocking, head of investments at Co-operative Insurance, said: “While ethical investment still represents a small amount of the overall market, evidence strongly suggests that growth is set to continue.”

Mr Hocking added that the Co-operative expects increasing numbers of consumers to invest ethically as the deadline approaches.

Meanwhile, according to moneyextra.com, a survey from Nationwide estimates that savers in the UK could be paying more than £230 million extra in tax by not taking advantage of their yearly Isa allowance.

Tags: yearly isa allowance, investment, amount, head of investments, figure, expects increasing numbers, GBP, investments

Brits increase savings 39 fold

British consumers have increased the amount they save by 39-fold since the early 1960s and by 31 per cent since 2000, according to new research.

Findings from the National Savings and Investments’ (NS&S’) Century of Saving report predicted that the savings ratio will rise in the years ahead.

However, it could be at least fifty years before the majority of Brits become regular savers.

The research also showed that gross savings have risen significantly from just £1.1billion in 1957 to £43.9 billion in 2007.

Dax Harkins, NS& I’s senior savings strategist, said: “Advances in technology, over the last half century such as telephone and internet banking, have made it easier for savers.”

He added that future developments such as Apple’s iPhone will play a part in boosting the future savings ratio by making new products possible and providing new ways from which to access them.

According to research from the Lincoln Financial Group, more than 1.8 consumers are risking their retirement savings on the stock market.

Tags: fifty, 1960s, National, apple, new products, amount

Mortgage market “still buoyant”

The mortgage market is “still buoyant” despite the recent financial crisis due to the amount of remortgage business available, claims one expert.

Despite the market being healthy, Bestinvest said that it is becoming increasingly harder and more expensive to look at remortgaging property. .

Peter O’Donovan, mortgage manager for Bestinvest, said: “There are still plenty of people looking to buy houses, it’s just the cost of doing so, and once again making sure they understand exactly what it is they are entering into.”

Previously a remortgage would only cost a couple of hundred pounds but now the average fee is a £1,000, he added.

According to the Council of Mortgage Lenders, the credit crunch has resulted in funding difficulties for a number of mortgage lenders, reducing their capacity to lend.

Lenders have responded by reappraising the risks involved in lending, resulting in a tightening in lending criteria and a widening in mortgage margins to parts of the market.

Tags: amount, manager, UK mortgage terminology, lending, crisis, mortgage manager, funding, expert

Mortgage and housing fundamentals ‘broadly positive’

With such variety in predictions about which direction the markets will take, IMLA have said that there is a “broadly positive” outlook for house prices and the mortgage market.

It explains that this trend is unclear due to the disparity between demand for houses and the supply available, as well as the “inadequate” amount of new builds happening over the past years.

Executive director of IMLA, Peter Williams, commented: “Without doubt, there are some clouds on the near horizon but IMLA’s view is that, if the market correction gathers pace in the way some pundits suggest, then we should expect firm action by the Bank of England to support the financial markets, provide liquidity and, if necessary, cut rates to protect confidence and help the markets recover over the medium term.”

He added that, inflation in house prices varies from place to place across the country, saying that, realistically, it will only be those who have bought a property at the market peak who will be effected by the market slowdown.

Tags: market peak, mortgage, amount, bank of england, property, market, pundits, cut rates

Student mortgages remain popular

Despite the imminence of a market cool down, students are still looking to invest in property in their university town.

According to recent research by Abbey mortgages found that as many as 66,000 students already at university want to get a mortgage on their own place.

Furthermore, it found, 14 per cent of the student population hope to buy a house in their university town. This represents an impressive total of 154,000 students.

Nici Audhlam Gardiner, head of mortgages at Abbey, commented: “Britain’s student population continues to be a source of income for buy-to-let property investors, many of whom are parents of the students or the students themselves.”

He added that the most important issue to think about is affordability, especially when getting a buy-to-let mortgage.

Many students (44,000) have parents who are thinking of investing in property in a university town. The same amount hopes to invest with friends whilst at university.

With increased concern to find “green” financial products, the Co-operative bank has advised that there are many different options in this field from lenders and borrowers must shop around to find an option that best suits their needs.

Tags: property investors, student, imminence, Nici Audhlam Gardiner, Britain's student population, Subprime mortgage crisis, town

Blocked spending on credit cards problematic

Young travellers who take a parent’s credit card with them on their travels are finding it blocked for appearing fraudulent, gapyear.com has said.

Backpackers are often found to be spending abroad while their parents are simultaneously carrying out transactions on a copy of the same card at home which can lead to the provider stopping the card.

Tom Griffiths, founder of the travel website, said: “Because they visit a few countries in a limited amount of time, it looks like fraudulent behaviour.

“And, if they’re away from home, the credit card company tries to contact them but obviously they’re inaccessible, so their cards are being blocked. That’s a big problem at the moment [for] backpackers.”

He added that many parents give their children a credit card for cases of emergency as their “biggest fear” is them finding themselves without “access to cash” while away from home.

Furthermore, he said, there is now a specialised card coming in for backpackers and gap year travellers that is prepaid and allows transactions with no risk of blocking. It also removes the common problem building up “uncontrollable debt”.

According to gapyear.com 230,000 people take a gap year between the ages of 18 and 24, spending an average of £3-4,000.

Tags: card.tom griffiths, Parent, credit, amount, copy, fear, Credit card

Banking ’smart’ could make a big difference to your love life

The right choice as to where to do your banking and in which accounts could even affect your love life, according to research from Abbey.

In a survey conducted among its current account holders it was revealed that arguments over how much money is spent on gifts had actually caused three quarters of a million of them to split up with their partners.

Some 5.9 million savers complained their partners did not spend enough on them and Abbey argues that banking with an account paying more interest could keep couples together, as it would enable them to buy each other more gifts.

Steve Shore, head of banking at Abbey, said: “Love doesn’t come cheap … we estimate it costs over £1,500 a year to be in a relationship.”

Its data shows average amount spent on presents for a partner is £95 on birthdays, £133 at Christmas and £97 on other gifts through the year.

Day to day expenses such as drinking and eating (£1,044) both in and outside the house and entertainment such as going to the cinema (£224) also eat into savings, according to the report.

Tags: amount, research, bank, account, cheap, birthdays, right choice, finance

Rock plight highlights need for building societies

The difficulties of financial firm Northern Rock have underlined the difference between banks and building societies, it has been claimed.

According to Britannia, building societies are a the safer alternative and that could mean that the popularity of the institution could rise.

Commenting on the crisis Emma Taynton-Young, a spokesperson for Britannia building society said: “The recent market has actually strengthened the difference between banks and building societies, and we find it very easy to explain the difference now because it’s shown the effect of the opposite business model to ours.”

She added: “So in a way, yes, building societies are the safer option, and I think this answers the point as to whether the Northern Rock crisis will provoke a rise in the popularity of building societies.”

The firm also claims that the heavy restrictions placed on building societies contribute to the amount of confidence consumers have in them as institutions.

Tags: amount, Social economy, crisis emma, point, difference, britannia building society, building societies, rise

Happy couples warned over insurance

People in the UK are being urged to check their wedding insurance, as gifts they received on their happy day may not be covered after the cover period expires.

According to research by Abbey, 13 per cent of home contents insurance policies will not cover the value of wedding gifts temporarily.

And even if they do, this cover tends to only last a month – so the 28,000 happy couples married last month may need to move fast to ensure they are covered.

The report also revealed that many insurers limit their wedding cover. So, with the average amount spent on a present at £43, inviting more people could mean the limit is quickly exceeded.

“Sadly the amount of cover is often not enough to cover the number of gifts received by couples, and it only lasts for a month on average, potentially leaving newlyweds underinsured,” said Prasad Shastri from Abbey.

According to the study, newlyweds with temporary insurance of up to £1,000 would hit their limit after receiving gifts from on average 23 guests.

Tags: value, limit, home contents insurance, period, insurance policy

Credit card balance transfer fees rise

The cost of transferring balances across credit cards has been steadily rising in the past year, research from MoneyExpert.com has found.

Since being forced by the Office of Fair Trading to cut their charges, credit card providers have raised transfer fees from on average half a per cent to 2.67 per cent.

This tactic has been seen by some as a strategy to earn back some of the money the credit card providers lost when they were forced to cut their charges.

Sean Gardner, chief executive of MoneyExpert.com, said: “What goes down must go up seems to be the experience in the credit card industry.

“Card firms have lost out since they were forced to cut so-called default charges so now customers are losing out as balance transfer fees increase.”

However, though balance transfers are increasing, consumers should still be on the look out for better rates and be willing to switch, Mr Gardner said.

Meanwhile, the overall amount of personal debt in the UK now exceeds one trillion pounds, according to the debt organisation Credit Action.

Tags: Credit Action, year, action, chief executive, default, past year

Car insurance increases

Car insurance premiums are higher than ever before, according to the AA’s British Insurance Premium Index.

However, home and contents insurance premiums have fallen in the past quarter.

AA says that the average car insurance premium is now £822, a rise of 2.5 per cent in the last three months.

The firm points out that this is more than double the amount quoted in the first ever index back in July 1994.

Despite this, home and contents insurance premiums have fallen slightly in the same period of time.

Buildings cover is down almost two per cent, with the average quote being £207, while contents insurance has fallen by a little over one per cent to £147.

“Home insurance represents particularly good value having changed little over the past decade and while the trend of car insurance is firmly upward, there are still deals to be had,” said Kevin Sinclair, managing director of AA Insurance.

“Things have never been better for customers in terms of choice but make sure you’re comparing like for like and not just price for price.”

Tags: rise, car insurance premiums, insurance premiums, three months, decade

Glastonbury freebie for over-50s

Glastonbury festival is fast approaching and insurance firm Saga is offering a financial break to the over-50s who plan on attending.

Thousands of people aged 50 or over attend Glastonbury whenever it is on but with ticket prices escalating, it is proving to be more difficult to afford with each passing year.

In light of this, Saga says that it will refund the amount paid for a motorhome pitch by anyone who is aged over 50 and has Saga Motorhome Insurance.

The price of a ticket this year is £140 and Saga believes that many over-50s will struggle to meet that cost.

Despite this, the festival remains popular with the older generation, many of whom will have attended the original event.

Prices have risen drastically since that first festival in 1970 when the price of a ticket was just £1.

People wishing to take a motorhome with them to Glastonbury will have to fork out an additional £50 but if they have Saga Motorhome Insurance this will be refunded as long as they keep their photo ID ticket.

Tags: Saga Motorhome, amount, photo, photo id, year, saga, Somerset, insurance firm saga

Savers could benefit from another interest rate rise

Over the past year the UK has seen interest rates rise three times, shooting up from 4.5% in August last year to 5.25% by January of this year.

And with experts predicting that another rise of at least 0.25% will be enforced in May, and possible a further rise in the summer, borrowers on variable interest rates are dreading dealing with their finances, as this means that repayments will go up yet again. However, for some savers the story is quite different.

According to information from Moneyfacts interest rates on fixed rate savings accounts have been climbing, and another interest rate rise could spell good news for savers. According to one expert from Moneyfacts a number of banks and building societies have been raising fixed rate interest rates by up to 0.55%. This has created stiff competition between those offering these savings accounts, and at present the Nottingham Building Society offers the highest rate at 6.2%.

According to Moneyfacts’ Rachel Thrussell: “While rates in excess of six percent are currently very competitive, instant access rates are not far short of this mark, making the reward for tying up your money relatively low. So while these rates will offer a great return and piece of mind, perhaps the market has not yet reached its peak and better rates may still be yet to come.”

In a related report from Sainsbury’s Bank, some experts were concerned that savers were being short-changed in terms on interest on their savings, with many account failing to keep up with inflation and interest rate rises. Consumers that are saving in a low interest account are urged to shop around and look for an account that offers a higher rate of interest, as this could really bump up the amount if interest earned each year.

Tom Smith
28th May 2007

More Information:

• Savings Accounts – Are They Worth It?
• Internet Bank Accounts – The Benefits and Drawbacks

Tags: increase, building, amount, rate, society, bank, accounts

RBS customers face new charge

The backlash from the Office of Fair Trading’s (OFT’s) crackdown on bank charges is beginning to be felt.

After the organisation announced that banks should reduce the amount they charge customers when it comes to penalty fees, it became apparent that banks would look for other ways to make their money.

Now Royal Bank of Scotland (RBS) has announced that it is making some changes to the way that it operates.

The bank has revealed that customers who change address must inform RBS before two statements are sent to the previous property or they will be hit with a £12 fine.

In addition, RBS has plans to change the way it treats card purchases of items such as gift vouchers and betting slips.

The bank wants these “cash equivalent products” to be charged in the same way as cash advances, meaning customers will incur a higher rate of interest.

RBS is not the first bank to announce changes to its operations since the OFT crackdown.

A number of firms have increased interest rates, while some are charging customers for failing to use their card on a regular basis.

Tags: banks, way, amount, card purchases, cash, Fair Trading, backlash, bank

Brits splash the cash on furniture

Brits are spending more on furniture and furnishings for their homes with the latest figures showing that we spent a combined £13.5 billion in this way during 2005.

The figure equates to an average of around £531.50 per household over the year or £10.22 per week.

Experts have highlighted that the amount spent on furniture and furnishings has rocketed by 70 per cent in the last ten years, with the average spend in 1995 being just £6 per week.

Although the amount being spent in this way is growing rapidly, Halifax says that there is no need to curb our spending as long as it is financed sensibly.

“When it comes to furnishings, we all love filling our homes with creature comforts but this shouldn’t leave you with empty pockets or paying high interest for months afterwards,” said Ken Stannard, head of Halifax Credit Cards.

The firm is encouraging consumers to make sure that they are fully aware of the true cost of any items they buy and wants people to shop sensibly.

Despite the high figures regarding the amount we spend on furniture, it is worth noting that the average person spends just one per cent of his or her disposable income on such items.

Tags: shopping, amount, love, figure, empty pockets, creature comforts, Business Finance, splash

Car insurance premiums soar

Car insurance premiums have reached their highest ever level, according to new research.

The AA British Insurance Premium Index found that in the last quarter of 2006 the average premium rocketed by 4.35 per cent.

That took the average cost of car insurance to a massive £806, breaking all previous records since the index began in 1994.

Drivers buying third party, fire and theft (TPFT) cover saw their premiums rise by a smaller amount, but they are still paying the most for their insurance.

According to the index, the average TPFT premium is £999.45. This is largely because a typical TPFT buyer is young, meaning higher premiums and little no-claims bonus.

“Young drivers account for a quarter of all road fatalities and are five times more likely to have an accident than a driver aged 35-plus,” said Kevin Sinclair, managing director of AA Insurance.

“Premiums reflect this shocking record while many insurers will no longer cover young drivers.”

The Index also looked at home insurance premiums and found little change. However, some analysts believe that with an increasing number of freak weather incidents in the UK, we could soon see premiums rising.

“The recent north London tornado is an example and meteorologists are predicting more of the same,” commented Mr Sinclair.

“Insurers are taking note but it will take several such events to have a significant upward influence on premiums. However, I do believe that this year will start to see an upward trend.”

Tags: change, north London, road fatalities, record, amount, upward trend, upward influence, Vehicle insurance