Vehicle insurance related costs soar

It has been revealed in a recent report that costs relating to insuring cars and other vehicles have soared in the UK over recent months, resulting in many drivers who may already be struggling financially due to the cost of living and petrol prices finding it even more difficult to keep their vehicles on the road.

According to the report the costs associated with insuring a car or vehicle in the UK have increased by more than 14 percent in the second quarter of this year. The figures have come from the EMB Car Insurance Price Index and the online insurance comparison site Confused.

The rise in costs associated with insuring a car are much higher than the increases that were seen in the final quarter of last year and the first quarter of this year. In the last three months of 2009 costs relating to insuring a car increased by 4.3 percent, and in the first three months of this year the costs relating to insuring a car increased by 6.3 percent.

The massive increase in costs of over 14 percent seen in the second quarter of this year has resulted in around £74 being added to the average cost of car insurance for drivers. This reflects a total increase of 31 percent according to figures, and brings the average annual cost of car insurance to £599.

Some areas saw costs relating to car insurance rise more than others, and amongst those to be hardest hit were inner London and Manchester. Insurance officials have also said that this is not the end of the bad news for drivers, as many believe that the cost of vehicle insurance could continue to increase, which would mean even higher premiums for many cash strapped drivers.

Tags: second quarter, Insurance, quarter, end, car insurance, United Kingdom, premiums

Repossessions fall in second quarter

Since the onset of the global credit crunch, and with interest rates having soared over 2006 and 2007, many homeowners have struggled to keep up with their mortgage repayments, which led to soaring repossession levels in the UK. The numbers of repossessions over the past couple of years have made for gloomy reading, prompting the government to take action such as slashing interest rates to an all time low.

However, a recent report has shown that in the second quarter of this year the number of repossessions in the UK has dropped by 9 percent, and industry officials have claimed that this is down to a combination of factors.

The rock bottom base interest rate of 0.5 percent is one of the factors that has been attributed to falling repossession numbers. Another factor that is claimed to have helped cut repossession numbers is the way in which cases are now handled by courts and lenders.

Between April and June of this year 13,610 homes were repossessed in the UK, and this compared to the 14,884 homes that were repossessed in the first quarter of the year between January and March.

However, compared to the second quarter of last year repossession levels are still up by around 23 percent. The Financial Services Authority has said that one of the main reasons behind the quarterly drop in repossessions is likely to be the changes that have been made in relation to how repossession orders can be granted by courts.

One official said that it was also down to the fact that people were becoming more confidence about approaching their lenders when they ran into financial difficulties. He said: “Borrowers that have been in arrears believe that their lender has been helpful and has treated them fairly. Those that face payment problems should therefore not be daunted by their arrears, but should take control of the situation by seeking help as soon as they can.”

Tags: recent report, control, drop, second quarter, situation, repossessions, reading