Double-Digit hike insurance of the car here

By Claire McNeilly

PRICE WATCH

NORTHERN Ireland's drivers have been told to brace for further misery amid fears that the cost of car insurance is set to soar significantly in coming months.

The Automobile Association is predicting that motorists in the province are facing a hike of 10-12% on an average comprehensive premium in the next 12 months, even though we already pay the highest car insurance costs in the UK.

Any double digit rise could leave hundreds of motorists watching their annual policies rise by an extra Pounds 50 this year -- with some facing higher hikes. This will no doubt anger beleaguered consumers already struggling with pay cuts or unemployment -- and a rise in prices at the petrol pump.

Just last week, drivers saw a rise of over 4p on a litre of unleaded petrol, exacerbated by a Government fuel duty hike.

Meanwhile, the Consumer Council has also examined the high insurance premiums faced by drivers and found that car insurance is collectively costing Northern Ireland's motorists Pounds 136m a year more than if they lived elsewhere in the UK.

The shocking figure has prompted an investigation into the industry here, where the watchdog claims companies can charge around Pounds 300 extra for annual cover.

Hardest hit are drivers in rural and low income areas, but the findings have also revealed insurance premiums that are so expensive 33% of local customers can't afford to pay for them.

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Originally published by Claire McNeilly cmcneilly@belfasttelegraph.co.uk.