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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Car insurance premiums experience unexpected fall

It has been reported by a motoring industry group that car insurance premiums have experienced an unexpected fall, although this is said to be a short term reduction, with prices expected to increase again. The data was released by the motoring group the AA, which claims that in the first three months of this year car insurance premiums fell by 3.2 percent.

The fall in car insurance premiums was said to be a very unexpected one, particularly given that over the course of last year car insurance prices increased by 18.7 percent in total, resulting in further financial misery for the many drivers who were already experiencing problems due to other motoring costs. The fall means that the average cost of full comprehensive insurance is now £968.

However, whilst the temporary respite may come as good news to driver, particularly given the soaring price of petrol and diesel at the pumps, the lower prices are not expected to last. The report claims that over the rest of this year drivers are set to be hit with rising insurance premiums once again, and this is likely to continue for the foreseeable future.

It is thought that insurance companies at the more expensive end of the market have been reining in their prices, and this is what has caused the temporary drop in premiums seen during the first quarter of this year. However, the rest of the year will see insurance premiums increase once again, causing more financial problems for motorists.

Those that feel that they are paying over the odds for their cover are advised to shop around and compare prices in order to get a better deal. It is also worth contacting the current insurance company as the firm may be prepared to do a better deal if they think that the customer is going to move elsewhere.

Tags: driver, Insurance, finance, insurance premiums, car insurance premiums

An increasing number of insurance applicants telling lies

Every year many people apply for a variety of different types of insurance cover in the UK, from home and car insurance cover to life and income insurance cover. However, according to recently released figures there has been a sharp increase in the number of people that are telling lies on their insurance application forms in order to get a better deal on the cost of their insurance cover, and officials have stated that it is the honest consumers that are going to end up paying for these lies. Read more

Tags: insurance fraud, application forms, cost, driver, finance, abi, insurance lies

We want tougher punishments, say drivers

Increased police patrols and tougher penalties for illegal drivers are just two of the measures that motorists want to see introduced on the UK’s roads.

Drivers were asked what they would do to improve driving if they were Prime Minister for a day and it seems that most people want to see stricter enforcement of laws.

The second most popular suggestion was to improve public transport so that fewer cars are on the road.

American Express Motor Insurance carried out the research, asking 10,000 of its customers for their opinions.

Joanne Field, marketing manager at the firm, said that one of the biggest problems on the UK’s roads, according to those surveyed, is people driving without car insurance.

“The uninsured driver poses a risk to every insured driver – not only is there the extra premium cost, but there is the risk of being involved in an accident with them,” she commented.

Motorists were also asked who they think are the most dangerous drivers on the road, with both men and women choosing youngsters and van drivers.

Despite this, almost everyone surveyed admitted to having some bad habits behind the wheel, with 90 per cent saying that they regularly drove in bead weather.

A further 81 per cent got behind the wheel when tired, 77 per cent when low on petrol, 59 per cent admitted to eating while driving and 47 per cent still use a mobile phone.

Drivers are advised to avoid any distractions when driving and the use of mobile phones while behind the wheel is not illegal and punishable with three points on your licence.

Tags: prime minister, field marketing, tougher punishments, driver, Business and Economy, cost, stricter enforcement

Why Does Car Insurance Cost More For A Young Person?

Bright Young Things

Trying to second guess what your insurance is going to cost you is a nightmare. Despite all the insurance groupings, one thing you do know is it will cost a lot more for a young person than somebody of more advanced years. Why? Read more

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