Motor insurance quote news
14/03/2008

Motorists' Budget pain and high car insurance bills

A major Government-led assault on motorists is underway with at least nine out of 10 vehicles facing rises in road tax bills, according to analysis of this year's UK Budget. Combine this with higher female car insurance costs and swingeing increases in other household bills, then the average UK motorist - male and female - appears to be reeling from the scale of price rises.

Road tax hikes are set to double for millions with the introduction of 13 bands related to CO2 emissions, with a maximum level of £440 for top-of-the-range type vehicles. New cars will also be hit by a £950 drive-out-of-the-showroom first year tax.

In addition, fuel duty will rise later this year - despite semantics from Alistair Darling, the Chancellor of the Exchequer, who said he was delaying the increase from October.

This extra fuel cost is expected to see an average £16 per year increase for small car owners - such as Nissan Micras.

The Telegraph newspaper forecast nine out of ten drivers would face higher bills, also pointing out car costs had shown a steady rise of 19 per cent during the last 10 years.

The AA has criticised the Government, saying changes were being rushed and hitting too many vehicles and their men and women car owners.

Cars that are older than seven years (pre-2001) will pay a single £200 annual road tax that is due to be inflation-linked.

It is a fact that only nine per cent of UK vehicles are expected to benefit overall from the Budget, while an increase in female car insurance costs would be likely to severely affect the 88 per cent of road users facing the road tax rises.