New research has recently found that car insurance rates have been soaring into the atmosphere as consumers report such exorbitant motor car insurance quotes as £9,000 for an old Land Rover or £12,000 for a second hand Astra.
Reports have been rolling in that have led many to believe that the availability of discount car insurance in the UK is a thing of the past. Such instances as more than £4,000 online car insurance quotes for 1.1 litre compact cars and premiums increasing by as much as £500 in comparison to last year’s prices in spite of no significant changes to individuals’ driving records or vehicles.
Moreover word has spread regarding younger motorists attempting to save money by switching to cars with smaller engines in lower car insurance groups only to be faced with a rate increase sometimes in the hundreds of pounds.
Some of the latest industry figures back up such unbelievable stories, however. The AA corroborated motorist claims in a recent survey that found the average price of an annual comprehensive policy rose by more than 40 per cent over the past year. Additionally younger drivers aged between 17 and 22 years saw an even more whopping 64 per cent average increase.
Experts say that fraudulent motor claims have been a major reason for the increase in insurance premiums. More than £1.1 million worth of fraudulent claims are exposed on a daily basis in the UK, and as a typical whiplash claim can net £4,000 in compensation costs many motorists have read the writing on the wall as to where the rate hikes are originating from.
Uninsured drivers are another problem, with the Motor Insurers Bureau estimating the costs of the country’s uninsured drivers at in excess of £500 million on a yearly basis.