Car insurance costs to soar

It’s been a painful week for drivers – and it’s only going to get worse. Insurance costs are set to soar and tough new penalties have been introduced for common motoring offences. Together these could cost drivers hundreds, if not thousands, of pounds. Here’s a look at what’s changed and how you could be affected.

Rising car insurance costs    

On Monday, a change to the way compensation for personal injury claims are calculated was announced by the government that will make it much more expensive for insurers. The ins and outs of the issue make for pretty dull reading (although the Daily Mail has a useful guide here) but, in a nutshell, it means as of March 20th, victims will get bigger lump sum payouts so insurers’ costs are going up. In fact, they say it’s going to cost them billions of pounds and the only way they can pay for it is to put up the cost of premiums.