Grab your pitchforks – premiums could increase yet again

Insurance experts say it may be time for the motoring public to grab their torches and pitchforks, as car insurance rates could be poised to increase yet again as the number of car accident claims went up by 18 per cent in 2011.

Claims volume is understood to be driving insurance premium rates, as car insurance companies are inundated by costs related to defending spurious and fraudulent motor accident claims. The worst part is that the roads are actually safer than they were in the past, with last year seeing the number of accidents by 11 per cent, experts say.

Whiplash claims alone are estimated to add £90 to the average motorist’s annual insurance premium over the past few years. However, the last rate hike could see an additional £50 added to already harried motorists’ premiums, though the Association of British Insurers said that there were difficulties in predicting exactly how much prices would increase, but with so much fraud within the system, premiums will indeed be rising.

Insurers saw their costs increase by £400 million last year, with car insurance claims involving bodily injury increased at their highest rate from 2010 to 2011. Not only that, but any geographical areas that have claims management companies have become claims hotspots as well, according to recent research, but this may soon come to an end as there is legislation currently working its way through Parliament that is specifically targeted to reduce the way claims management companies operate on a day-to-day basis.

© 2018 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

What do you think?

Please note that email addresses are not visible on approved comments.