One major provider of discount car insurance quotes in the UK recently reported a 10 per cent underlying earning increase in 2011, ending the year with £99.4 million in profits even in the face of increased levels of motor car insurance fraud.
LV=, which has in excess of five million customers and provides cover for nearly 3 million car insurance customers alone, said that while the number of instances involving attempted fraud or expensive personal injury claims increased, its motor insurance division increased its trading profits by more than double, with £72.1 million of its total £99.4 million group-wide profits coming from vehicle cover.
LV=’s general insurance division also had quite the strong year as well, according to Mike Rogers, chief executive for the insurer. However, with such strong profits, customers with LV= insurance policies have questioned why car insurance rates continue to go up for them year-on-year.
Industry experts say that motorists are getting tired of hearing how insurers have been ‘struggling’ with high volumes of expensive car accident claim settlement figures and instances of fraud, which have been routinely blamed for premium price increases over the past few years. Massive profit margins announced every year by these same car insurance companies do little to reinforce the idea that insurers are facing financial ruination by the so-called ‘compensation culture’ in the UK.
Many Brits feel that insurers need to cease raising rates at a time when the cost of keeping the car is spiraling upward due to massive increases to the price of fuel, with both petrol and diesel fuel costs reaching record levels with no sign of abatement.