Motor car insurance market not so competitive, expert says

While it seems that everywhere you go and look today you’ll see a new advert pop up on television for the next big thing in online car insurance comparison sites, experts say that the impression that the motor car insurance market is a competitive one is not necessarily true.

All of us have seen the adverts for car insurance comparison sites that boast how they can slash the costs of insuring your car.  However, anyone who has faced a renewal recently can attest to how much premiums have increased in comparison to last year.

Car insurance rates have gone up by an average of 30 per cent, official figures say, which makes them one of the fastest growing items that are measured by the consumer prices index.  These increases aren’t due to roads becoming more dangerous or Brits becoming less cautious, however.

The truth is quite the opposite, in fact.  Road accident casualty figures have dropped precipitously – nearly one third – over the last decade due to technological improvements to car chassis construction, road layout, and airbag use have all played a contributory factor to motoring more safely.

Experts say instead that the key cause of rising rates is simply massive levels of insurance fraud, and neither car insurance companies nor the police seem to be able to do much to halt the spread.  Honest motorists instead see the added costs of defending against and then paying out on fraudulent claims.

One prime example of such rampant fraud is shocking in its simplicity.  In 2010, the NHS spent a total of  £8 million in the treatment of whiplash-related injuries brought about by sudden collisions.  However insurers ended up paying £2 billion in whiplash-related claims.

© 2022 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.