A car insurance company has revealed that family car motorists are paying hundreds of pounds over the odds for their car cover. This expense means it is a double wallet bust if they own more than one vehicle.

The car firm used the Ford Mondeo as an example. This car model is a clear family favourite, but the price of an insurance policy for this car makes it suddenly less desirable. The insurance cost for a 30 year old man could reach up to £400.

A 30 year old woman driving a second car, a Ford Fiesta, would pay up to £350. So the average two car family could be paying as much as £500.

It was proposed that even if  a family benefited from a 10% discount for covering a second car, they would still be paying more than they would by getting separate policies from a cheaper insurance company.

An example of this is a bigger family vehicle like the Volvo V70 estate, where a 30 year old male driver could shell out over £1,000. A 30 year old woman driving a Volkswagen Golf could face an insurance bill of up to £555.

At the extra cost of £1,000 for the two cars, even using a 10% second car discount would not bring significant savings to drivers.

Tina Shortle, marketing director of the insurance company behind the study said: “Family cars make up a huge proportion of the vehicles on our roads, so if each one of those families is paying too much for their insurance cover, that makes a massive dent in already stretched household budgets.”

Shortle furthered:“We are also seeing a growing number of people owning second cars, whether it's just for the school run or for driving to the station for a train commute to work. If it's a second car, the purchase price may well have been lower, so it's important that drivers get the best and cheapest insurance cover possible to keep running costs manageable.”

Car insurance hike

Of the 38 million drivers in the UK, the 30 to 39 age band is one of the biggest with over 80% of drivers in that age group holding a license. This means that a huge portion of the country’s 28 million licensed cars are used by families.

In addition, the number of households owning more than one car has doubled to 26% since 1980, which means there are more two-car households than households with cars. This means that more families than ever before are facing double car insurance bills.

Similarly in America, car insured customers are also seeing a hike in their cover costs. One driver stated that he paid $2,400 yearly for car insurance. He contends that he was unfairly forced to pay a high rate because of his lack of credit.

“I haven't established credit," said Manning, a student at Lansing Community College. “How do you expect me to have credit?” However, he said: “I believe that the state is making a move in the right direction, as long as they are serious and it's not just politics.”

On Wednesday, Melvin Butch Hollowell, the state's insurance advocate, outlined a series of proposals he said would lower insurance rates for many and give the state insurance commissioner more authority to set rates.

“People are tired of paying the highest rates in the nation and they want something done about it,” Hollowell said. “The climate is ripe for insurance reform.”

Therefore, Hollowell has proposed a plan named “Affordable Insurance for All. A Plan to Protect Michigan Consumers,” in a bid to lower car costs.