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Just days after news broke that car insurance premiums had risen by 4.5 per cent in the second half of last year cash-strapped motorists were warned this is just the beginning for premium increases.
Further rises in the cost of car insurance are expected due to an increase in wreck recovery prices. Insurers may now have to pay tens of millions of pounds more to recover vehicles under new plans - and this cost will almost certainly be passed on to drivers.
Currently, police in the UK are capped on the charges they implement should a write off take place. For example, removal costs are limited to £105. Storage fees are also charged at around £12 a day, while there is a typical £50 disposal fee.
However, the Government plans to introduce a banding system which would see charges rise. The costs would typically range from £150 to a whopping £8,400 based on the size of the car and location of the accident.
Most car insurance policies will take care of recovery costs for motorists - though drivers are being warned to check the small print to ensure they are covered.
With premiums rising, motorists should also take action to limit their monthly costs and shop around for cheap car insurance.
If your insurer introduces a significant hike to your policy at the time of renewal you should definitely look elsewhere. A quick search using a car insurance price comparison tool will indicate the deals that are available to you. In any event, you should always shop around and compare quotes.
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