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Thieves 'pushing up car insurance prices'

The development of more sophisticated methods of theft is causing car insurance premiums to rise, it has been claimed.

According to motoring services company AA, a number of factors are pushing the cost of insurance up, with theft being a particular problem due to the rise in gangs of "steal to order" thieves using methods such as "fishing" car keys through letter boxes.

In addition, the cost of repairing cars is rising as modern cars tend to be more extensively damaged in accidents because they are designed primarily to protect the people inside, while uninsured drivers and an increase in personal injury claims are also causing premiums to soar.

Spokesperson for AA Ian Crowder said: "If you're in an inner city area and you leave your car on the street you could pay three times the premium of somebody on the outskirts of town in a leafy cul-de-sac with their car parked in the garage."

Drivers who struggling to insure their vehicles may need to use a loan to cover the cost of their premiums, while recent research by Alliance and Leicester Personal Loans found that 25 per cent of Britons have taken out a loan to pay for a used car.

See how much you could borrow with a car loan from Lombard Direct.

30/07/2007 16:43:10

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