AA indicates comprehensive motor car insurance up by 30 pc

AA Insurance has discovered indications that comprehensive motor car insurance premiums have risen by more than 30 per cent over the past year.

The AA has been one of many car insurance companies that have claimed an increase in incidences of motor car insurance fraud is to blame for the heightened premiums.  Costs to consumers will continue to rocket skyward, the insurer warns.

Simon Douglas, director of AA’s insurance division, stated that he would not be surprised if an unprecedented increase of 50 per cent by the end of 2011.  The insurance director continued, remarking that the most common types of fraudulent claims being filed with insurers involve false reports of personal injuries.  Such claims habitually involve whiplash or other neck injuries, while other times a small injury caused by a minor accident is exaggerated in order to increase a compensation payout.

Car insurance industry experts that as the number of bogus or fraudulent claims continue to grow, the ability to find cheap car insurance in the UK will further dwindle. Many of these claims can involve conspiratorial groups of drivers who stage elaborate ‘cash for crash’ accident tableaux before dividing any insurance payout cash amongst themselves.

Furthermore there are more than 1 million drivers in the UK getting behind the wheel without insurance according to the AA.  In light of this statistic, the insurer warns that the number of uninsured drivers may increase even further if car insurance premium increases continue.

Industry experts agree that the vicious cycle of fraud could work to cripple not only motorists but insurance companies as well.  Many car insurance market insiders have begun to explore ways to beat back the inexorable march of corruption by investing heavily in fraud detection schemes and technology.

© 2018 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

What do you think?

Please note that email addresses are not visible on approved comments.