Check your car insurance as rising costs drive Brits round the bend

28 May 2008 / by Rebecca Sargent
Hundreds of lorry drivers rallied against rising fuel costs yesterday by driving in convoy through busy London areas to deliver a petition against the proposed 2p tax rise due to hit this Autumn.

The move comes as Labour MPs put pressure on the Government over a Budget tax rise that could do more damage than good. The proposed 'green' tax which would increase excise duty on cars that fail certain environmentally friendly rules could increase a family's annual car tax by more than £200.

And, MPs have warned that Gordon Brown could see the uproar over the abolition of the 10 per cent income tax start rate repeated if the Government fails to recognise the rapidly rising cost of driving.

According to lorry drivers, fuel now costs them an average of £1,000 a week and the proposed 2p tax rise could deliver a fatal blow for some. Consequently, hauliers are demanding an 'essential user' rebate to ease the financial pressure.

Labour MP Ronnie Campbell spoke in favour of the tax being abolished all together; he told the BBC: "Fuel is already £5 a gallon in some places…the chancellor needs to cancel the 2p rise.

"It's a tough one for the environmentalists, but unfortunately people at this time can't afford it." He continued highlighting the pressure already being felt by drivers as a result of the credit crisis.

Household bills are rising and look set to continue an upward climb for the foreseeable future; in addition to these costs, petrol is now more than £1.10 a litre and car tax looks set to rise. These price hikes could drive Brits off the road and potentially force motorists to choose between essentials like food and a car.

As other car costs rise, Moneyexpert.com advises drivers to check their car insurance and make sure they are getting the best value for money. Sean Gardner, founder of Moneyexpert.com said: "While disposable income is being squeezed people need to make their money work as hard as possible for them.

"You could save up to 30 per cent off your car insurance by shopping around and that's got to be worth having." He added.

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