The ability for honest drivers in the UK to find discount car insurance is suffering at the hands of fraudsters, remarked one industry expert in a recent interview.
AA motor car insurance director, Simon Douglas, recently stated that desperate drivers are turning to less-than-honest means of finding cheaper car insurance. The primary drivers behind the duplicitous behaviour is likely spiralling car insurance rates coupled with record fuel price increases, Mr Douglas said.
These increased costs make motoring unaffordable for a good number of Brits – particularly younger motorists with not that much money to begin with, said the AA director. This has led to more people not being exactly honest when taking out policies or even over-exaggerating the nature of their injuries in accident claims in order to recoup their expenditures, he remarked.
Ironically this leads to just more insurance policy increases in the future for honest motorists. This is due to the fact that increased expenditures on the part of the insurer needs to be passed along to their customers.
And insurance premiums have indeed been soaring over the past few years. 2010 alone saw the cost of securing motor cover for a vehicle increase to record highs, as the AA recently released research figures revealing the average premium for annual comprehensive insurance had risen to £892 by the end of March of this year.
In the largest annual increase ever recorded by the AA – which has been tracking home insurance and car premiums since 1994 – rates rose in excess of 40 per cent in just 12 months. Industry experts also predict that rates will continue to rise throughout the rest of 2011 as fraud continues to have a deleterious effect on insurers’ bottom lines.