According to the latest British Insurance Premium Index provided by the AA, the average quote for a comprehensive policy in the UK rose by more than 33 per cent in 2010 and an additional 15 per cent in 2011. AA Insurance’s director, Simon Douglas, stated that the motor car insurance industry has an interest in keeping rates competitive, but accomplishing this goal has been complicated by the ever-widening gap between claims payments and premium income as personal injury claims costs have rocketed.
Both the Office of Fair Trading and the Transport Committee have been presented evidence by the AA in regards to the recent rise in premium costs. The insurer has also called for reforms in order to put an end to the rapidly burgeoning number of claims management companies and personal injury law firms that encourage accident victims to make claims for personal injury, even in the event of not actually sustaining one, as well as a blanket ban on these firms from cold-calling and sending unsolicited mobile texts in an effort to entice people to make claims, even though they would not have done so otherwise.
The AA also proposed overhauls to the way young drivers are trained in the UK. The insurer has called for the introduction of motoring safety into the natural curriculum and for improvements to be made to driving test courses.
Mr Douglas commented that the Government readily admits that a compensation culture has developed in the UK that makes it all too easy for people bring spurious claims for damages, adding that the Justice Minister has already come forward with proposals to reform the process for making legal claims – a measure that the AA would support wholeheartedly.