The Office of Fair Trading has been looking into the prices of car insurance to find out why some premiums have risen by as much as 40 per cent.
It is asking for evidence from car insurance companies to back up why their prices are so high – raising the question of where drivers should buy car insurance.
French car manufacturer Peugeot believes it can tackle rising insurance costs with its Just Add Fuel scheme.
This scheme is Peugeot’s way of grouping all aspects of car insurance (financing, comprehensive insurance, servicing, breakdown cover, road tax and warranty) into one monthly payment.
This scheme will be available for drivers aged 25 and older who have had a UK/EU drivers licence for two years and have a maximum of one motoring conviction in the last five years.
For example, a driver who puts down a £1,500 deposit can drive away in a Peugeot 107 Urban for just £169 per month. This includes all of the insurance aspects mentioned above.
With the scheme you will not lose your current no claims bonus and you will also earn a no claims bonus.
Other Peugeot models available with the Just Add Fuel scheme are the Peugeot 207, 308 and 508.
As well as Just Add Fuel being one monthly payment, it will also go unchanged for three years, even if some of the costs would normally rise in that period.
Neil Moscrop, Sales Director for Peugeot UK, said: “In these tough economic times, motorists want to know exactly where their finances are on a monthly basis and Just Add Fuel achieves that goal. The cost of insurance is an extremely volatile subject and to some, is very worrying. Our scheme eradicates those worries.”
For more information on the Just Add Fuel scheme read our guide to Peugeot Just Add Fuel or visit your nearest Peugeot dealership.