Scottish motorists paying more due to English loophole

New information has recently emerged that Scottish motorists could be paying more on their motor car insurance due to overly loose loopholes in the English legal system that works to encourage fraudulent insurance claims.

The AA states that car insurance rates throughout the UK have risen in excess of 40 per cent recently, mostly driven by large hikes occurring in 2010 and 2009.  The average premium car insurance companies charge overall is approximately £1,300.

Scotland’s average premium lags behind the national average by several hundred pounds at around £971.  Scottish motorists reap the benefits of less congestion on their motorways and a lower incidence rate of car crime by experiencing discount car insurance, but some have argued that it should be even less expensive than it is now.

Insurers insist that rates have increased in response to the costs they incur through an uptick in the number of bodily injury claims that result from road traffic accidents.  They say the blame can be laid at the feet of so-called ‘ambulance chaser’ solicitors who encourage claimants through promises of big settlement claims and ‘no win no fee’ legal representation.

In addition to engaging in aggressive advertising campaigns via unsolicited telephone calls and text messages and television adverts, these solicitors also reward garages handsomely with a ‘referral fee’ for tipping them off in regards to any accidents that may have occurred.

AA spokesman Ian Crowder stated that many garages can earn more in referral fees than they do from actually repairing damage to cars.  To make matters worse, insurers themselves have been selling details motorists claiming against their own policyholders to law firms allied with their cause.

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