Cheap car insurance experts have recently said that the RAC may be dead wrong when it comes to measuring the cost of motoring in the UK.
The motoring organisation recently published its newest report on the costs of keeping a car in the UK with its Cost of Motoring Index, stating that costs have increased by approximately 14 per cent over the past year. However, motor car insurance industry experts have called foul on that figure, stating that it seems an almost laughably conservative estimate for drivers crippled by the rising price of petrol and increasing car insurance rates.
The RAC stated that, according to its calculations, the cost of breakdown cover, finance, maintenance, and fuel has risen by £6, £33, £38, and £160 respectively from their costs just one year ago. However, the motoring organisation also claims that insurance premiums have only gone up by only £68 a year from 2011 figures, increasing to £551 from £483.
The claim has left industry experts scratching their heads in confusion, especially in light of the RAC’s report published earlier this summer, in which the motoring organisation claimed that premium prices have increased by more than 40 per cent over the past 12 months. Moreover, the RAC also said at that time that policies would be more than likely increasing in price over the next few months – if not years – yet it seems that the organisation has changed its tune.
Industry insiders are a bit baffled by this swift turnaround by the RAC, and even more so by the claim that the average British motorist pays just £551 for annual cover. Many have questioned how believable such a statement could possibly be, voicing concerns over the motoring organisation’s methodology for reaching such a figure.