In the last year, car insurance premiums have risen by approximately 40%!
Even when drivers accrue another year’s worth of no claims bonus, many are finding that their premiums are still increasing.
One of the main factors driving this huge increase has been the rise in numbers of fraudulent accident claims. Recent vibes from the insurance sector are indicating that more increases in insurance premiums are a certainty.
The AA had conducted some research into insurance premium costs, and found that this increase of 40% on average for a one year comprehensive car insurance policy was the biggest ever increase since they began keeping records.
The young driver category is the one which has seen the biggest yearly increase in their premiums. For those between the ages of 17 and 22, the average yearly comprehensive insurance cost increased by just over 50%, with male drivers of this age paying nearly double that of their female counterparts.
Recent estimates have put the cost of fraudulent insurance claims to add an extra £80 onto the average car insurance policy. Personal injury claims have also risen sharply over the last year, with injuries such as whiplash being quite hard to argue for or against. As a result, various insurance experts have estimated that for every car insurance policy, around 10% of the premium goes straight to lawyers.
There are many ways which are often thought of as common sense which can help motorists, but people still do not pay enough attention to them to minimise their insurance premiums.
One such thing is to inform your current insurer if your personal details change. For example, if you change jobs or move to a different area, you may be perceived as less likely to make an insurance claim by the insurer and therefore be offered a lower premium.
For any young drivers, driving sensibly may sound like boring advice, but the savings in the cost of their insurance premium are often well worth the effort. First year drivers often face quotes running into a couple of thousand pounds. By driving carefully and obeying the law, at the end of the first year their premium can drop by many hundreds of pounds, sometimes even by half!
