The lack of discount car insurance in the UK has quickly become a hot-button political issue as premium prices continue to rise for the average motorist.
However, not all drivers are created equal in the eyes of car insurance companies. While premium prices have risen across the board, car insurance rates for younger motorists have been through the roof and continues to climb ever higher, according ot the AA.
Transport Committee MPs have accused insurance providers of being part of the problem for taking what as known in the industry as ‘referral fees’ for passing on the details of their customers that have been involved in accidents to third parties, such as claims firms and solicitors. This policy has led to the value and quantity of claims to rise steadily, which in turn raise customer premiums as insurers pass on the increased costs to their policy holders in the form of higher premiums.
As if insurers were not under enough fire already, the recent revelation that some insurance providers are charging the jobless as much as 63 per cent more than someone with a steady job for the same level of cover, even as the unemployment rate rockets upward and inflation causes even those still with jobs to have to make do with less cash. However, the Association of British Insurers went on the defensive by stating that their research data statistically proves that the jobless are riskier drivers than the employed, adding that while this may cause difficulties for people, the evidence supports the decision.
In the wake of what some have called ‘cutthroat and reprehensible’ actions by the insurance industry, consumer groups have urged drivers to shop around for the best deals through the use of car insurance comparison websites.