Car insurance premiums increase by up to 50 percent

It has been revealed that drivers are facing huge financial burdens, with the news that in some cases car insurance premiums have soared by up to a massive 50 percent in the space of one year. This could see some motorists now paying hundreds of pound a year extra in car insurance premiums at a time when many are already struggling to keep their vehicles on the roads due to high petrol prices and other financial commitments.

Annual renewal costs on car insurance are now said to be at an all time high, and according to some industry experts part of the blame for the soaring cost in cover lies with ‘crash for cash’ fraudsters, who are swindling insurance firms out of huge sums of cash by staging crashes and then claiming. Fronting, which is where parents are including their kids on their own cover due to the cost of insurance for a younger driver, has also been blamed for the surge in car insurance costs.

The cost of cover for male drivers aged between seventeen and twenty two years of age has soared by around 51 percent, taking the average price of cover to £2500. For female drivers of the same age the average cost of cover is around £1400 according to figures released by the motoring group, the AA.

The AA commented on the fact that many parents were engaging in fronting, stating: ‘This is actually fraud and it is driving up premiums for everyone. Insurance companies are getting much better at detecting this.’

The company added: ‘There has also been an escalation in our compensation culture, imported from America. In the past, if you had a knock or a bump and were left with a sore neck, you would take a paracetamol. Now personal injury lawyers encourage you to sue. Personal injury claim rates in Britain are four times those of any other European country – yet we have fewer accidents.”

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AA report huge hike in car insurance costs

Figures that have been recently released have shown that there has been a huge rise in the cost of vehicle insurance, and the cost of cover could continue to rise. The research was carried out by the AA and showed that the average cost of car insurance has rocketed by a record 14 percent, and it could rise higher still. Read more

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No Claims Discount – What Is It?

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