As car insurance rates continue to spiral upwards, motorists can only wonder how far they will continue to rise.
Cheap car insurance was much more readily available less than two decades ago, experts say, as the average motor car insurance premium price was around £333, with the lion’s share of insurers paying to repair or replace a vehicle. However, according to some estimates, the average premium price today stands at £1,510, and a large proportion of this cash goes towards paying expensive legal fees to lawyers and claims management companies from personal injury cases.
The insurance industry has changed on a fundamental level over the past eighteen years, experts say, as now even a minor prang can result in triggering a vast array of opportunistic trade professionals and businessmen to begin attempts to milk every last pound from the incident that they can.
Whiplash-related injuries from car accidents are especially prevalent, with insurers paying out around £2 billion on the 1,562 whiplash claims made in the UK every day, according to the Association of British Insurers. The ABI’s Malcolm Tarling said that there are more claims for whiplash in the UK than in any other European country, leading some to make the grim and humourless joke that the British have the weakest necks in all of the Western world.
Insurers have had to pass on the costs associated with these legal claims to their customers in the form of higher premium payments, even though research indicates that roads in the UK are safer now than they have in years. This has led industry experts to wonder just why premiums have been increasing, and who is ultimately responsible for driving costs up to eye watering levels.