Don't cut corners on motor insurance to make up for high petrol costs
Fri, 12 Aug 2005
Oil prices in the US have soared to more than $63 a barrel following reports of possible terror strikes in Saudi Arabia and the announcement by Iran that it is resurrecting its nuclear programme.
Crude oil prices reached a record high of $64.27 a barrel this week and analysts are predicting that UK oil prices could rocket to around £1 a litre as the Middle East continues to experience instability.
The price of petrol at UK pumps has increased by ten pence a litre on average during 2005 and crude oil prices have risen by 50 per cent.
The AA reports that unleaded petrol now costs more than £1 in some areas and the cost of motoring for an average family has increased by £23.32 a month.
The AA advises that anyone aiming to reduce petrol consumption should stick to the speed limit on motorways, moderate the use of air conditioning, which adds ten per cent to fuel consumption, and use the smallest car at their disposal for errands and short trips.
Drivers should not cut down on their insurance to reduce the cost of driving, however.
"There seems to be no sign of a slowdown in people using their cars for business and pleasure," said Ruth Bridger, of the AA Motoring Trust. 
© Adfero Ltd
An online quote will take less than a minute, and you can see just how much you could save.
About this policy
Sonar Direct Media Centre
- Car Insurance Industry News:
- June 06
- May 06
- April 06
- March 06
- February 06
- January 06
- December 05
- November 05
- October 05
- September 05
- August 05
- July 05
- June 05
- May 05
- April 05
- March 05
- February 05