New driver news - First time car insurance holders might be priced off road

Insurance news - First time car insurance holders could struggle with fuel costs

First time car insurance holders who have managed to find cheap cover are likely to be pleased that they have saved money on their motoring costs since fuel prices are reported to be going up again in the next few months.

According to the Ernst & Young ITEM Club, a non-governmental objective economic forecasts organisation, demand from a growing Asian economy will lead to a growth in the oil markets and an increase in the price of petrol and diesel.

It predicts that by 1215 the price of unleaded petrol will increase to about 154p per litre (currently 134.8p on average) and that filling a whole tank will cost some motorists around £100.

For any new driver car insurance holder who has not managed to find a good quote, the high cost of fuel could price them off the roads. Likewise, any high-mileage motorist, experienced or inexperienced, may find themselves struggling to afford spiralling fuel costs.

A senior economic adviser to the independent economic forecasting group states, "By 2013 prices at the pumps will be eating into household finances once again. Demand from the emerging markets will maintain the pressure on inflation, as will the increase in fuel duty on the home front."

In order to keep the price of motoring as low as possible, first time car insurance buyers may want to purchase a fuel-efficient vehicle and compare quotes to find the very cheapest deal on car cover available to them. Furthermore, cutting down on the use of their car and getting telematics insurance for low-mileage drivers could also save motorists' money.