Car insurance news

Tax threatens cheap car insurance

Cheap car insurance could be even cheaper, it has been revealed, if the Government didn't get their grubby little hands on it and tax us simply to cover our car in the event of an accident.

According to recent research by servicing and maintenance provider Motoreasy, a third of all the money spent by British drivers on keeping their cars on the road goes directly to the authorities in the form of tax.

Taxes on breakdown cover, servicing, road fund licences, motor insurance and VAT all add up to a fairly high figure, but when the tax on fuel is added too, the costs simply rocket. At present, around 72% of the price of fuel goes directly into the taxman's pocket, amounting to almost 20% of the average driver's total costs.

Highlighting the need for cheap car insurance to offset the costs, Motoreasy's David Gerrans said, "Motoring really does cost a lot more than people realise.

"The average motorist forks out almost £90 per week to keep their car on the road, £24.30 of which is tax.

"But with the continual rise in the price of public transport, what feasible alternative do they have?"

Get a cheap car insurance quote now!