Motorists face burdens as car insurance rates soar

New data has recently revealed that motorists are facing massive burdens to their financial security as some car insurance companies have raised their rates by as much as 50 per cent over the past 12 months.

This exorbitant price increase to car insurance rates could see some drivers paying hundreds of pounds extra every year in insurance premiums.  This is even more distressing to those motorists who are already experiencing difficulties keeping their cars on the road due to the rising cost of petrol and a myriad of other financial hindrances.

Many insurance industry experts blame the lack of discount car insurance on the prevalence of so-called “crash for cash” fraud schemes which drive prices up to pay for all the fraudulent insurance claims.  The practise of parents fronting their children by including them in their own policies has also been cited as a factor in the rampant rate hikes.

Male drives have been hit the hardest, especially those between the ages of 17 and 22, as the average car insurance quote for that demographic is currently £2,500.  Female motorists of a comparable age, a traditionally lower-risk group, average around £1,400 for the same level of insurance cover, states the AA.

The AA also spoke out on the amount of parents engaged in the practice of fronting their children on their own insurance by stating that doing so is actually fraudulent behaviour.  The company added that fronting drives premiums up across the board, though insurance companies are developing more advanced detection techniques to identify the practise.

Commenting on the massive upswing of car insurance claims, the AA stated that the so-called “compensation culture,” an import from the US, has been running rampant and leading to personal injury lawsuits over frivolous knocks or bumps that would simply fade after a few days.  The AA squarely blamed personal injury lawyers in the UK for encouraging such behaviour.

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