With a new AA survey understood to reveal that the cost of comprehensive motor car insurance has risen to £971 a year, motorists have united in their horror at massive hikes in their car insurance rates, experts report.
Drivers are seriously questioning how car insurance companies can justify the eye watering rate increases in the face of the soaring cost of living and sky-high diesel and petrol prices. Industry experts say that motorists are paying through the nose due to the dodgy practices, fraud, and greed in the £9.4 billion car insurance market, with rising car accident claims one of the key factors through the unsustainable cost increases.ting:
Whiplash claims in particular were the worst offenders, as there are now 570,000 of these types of claims being made every year, which represents a 33 per cent increase from 2008 figures, even in the face of the number of reported accidents on the decline. Insurers need to add approximately £90 to the price of the average motorist’s insurance premium in order recover these increased costs, which add up to around £2 billion in compensation payouts every year.
Whiplash is particularly hard to disprove due to low evidentiary thresholds regarding the diagnosis. However, a recent survey of medical professionals raised concerns that around 25 per cent of these cases could be over-diagnosed or outright false.
AA Insurance’s director, Simon Douglas, said that the UK has developed a so-called ‘compensation culture’ that encourages individuals to make injury claims regardless of the seriousness of the injury. Many drivers will even make claims even in the face of an absence of any injuries, Mr Douglas added.