The car insurance premiums have risen by a record of around 20% in the previous year due to damages done by uninsured and insurance frauds. Due growing fraudulent claims by these drivers, even the innocent drivers are suffering higher car insurance costs.
Comprehensive cover has increased by 18.7% during last year, 7.2% in final quarter while leaving average premiums over £1,000. AA insurance warned the drivers as the premiums for car insurance are expected to rise even further as insurance companies are struggling to keep up the steep increases and exhausted reserves in the claim costs.
A recent research also revealed that the fraud claims add to about £2 billion every year that amounts to £44 on the each household insurance budget. Due to so many insurance companies reporting increasing underwriting losses, the result is undoubtedly inevitable and unsustainable that premiums will increase even in the middle of so much competition in insurance market.
Insurance companies have asked for a public opinion stating that is insurers and drivers work on a mutual basis, collective honesty, and claim culture can certainly be altered. Uninsured drivers are also costing millions to the car insurance industry each year with MIB handling around 30,000claims caused due to these drivers. Around half of 1.5 million uninsured drivers are younger than 29 years that states low fines and high insurance premiums are motivating the young drivers to drive their vehicle without car insurance.
In addition to these crimes, it has started the vicious circle of high insurance premiums after drivers are caught driving uninsured. Uninsured drivers are around ten times likely to be charged for drink driving and are held responsible for around 160 deaths each year. Rather than avoiding car insurance policies because they are expensive, you can look into car insurance comparison sites and get the insurance policies that suit your needs and budget in the finest possible way.
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