Some motorists are suffering huge rises in the cost of car insurance, according to a What Car? magazine poll.
More than 80% are paying more for their insurance than last year. Only 16% are paying less.
As many as 32% said their premiums had risen by more than a third, with the average rise at 33%.
What Car? revealed that one 25-year-old man’s insurance had gone up 77% to £1,520, more than his Skoda Fabia was worth.
In another case an 18-year-old girl was asked to pay £4,250 for her Ford Fiesta, an increase of 52% on her premium last year.
Neither driver had made a claim in the past 12 months.
What Car? said the Association of British Insurers blamed the vastly increased premiums on three main things: uninsured drivers (who add on average £30 a year to a policy); fraudulent claims (£41 a year) and legal fees incurred in settling personal injury claims (£41 a year).
What Car? said while all three issues are the subject of increasing legislation and Government inquiry, it is calling on the authorities to act faster and more efficiently so innocent motorists do not keep on paying for criminal activity.
“We’re in danger of getting caught in a catch-22 situation, where insurance premiums rise as a result of insurance fraud, which in turn makes it more tempting to risk driving without insurance,” said What Car? magazine editor Jim Holder.
“For instance, at present the punishment for driving without insurance doesn’t fit the crime. Around 5% of drivers are estimated to be on the road without insurance but when a typical fine if they get caught is £200 and six points on their licence, you can almost understand the temptation. Young drivers with clean licences typically pay over £2,000 for insurance.”
source: www.shropshirestar.com
More than 80% are paying more for their insurance than last year. Only 16% are paying less.
As many as 32% said their premiums had risen by more than a third, with the average rise at 33%.
What Car? revealed that one 25-year-old man’s insurance had gone up 77% to £1,520, more than his Skoda Fabia was worth.
In another case an 18-year-old girl was asked to pay £4,250 for her Ford Fiesta, an increase of 52% on her premium last year.
Neither driver had made a claim in the past 12 months.
What Car? said the Association of British Insurers blamed the vastly increased premiums on three main things: uninsured drivers (who add on average £30 a year to a policy); fraudulent claims (£41 a year) and legal fees incurred in settling personal injury claims (£41 a year).
What Car? said while all three issues are the subject of increasing legislation and Government inquiry, it is calling on the authorities to act faster and more efficiently so innocent motorists do not keep on paying for criminal activity.
“We’re in danger of getting caught in a catch-22 situation, where insurance premiums rise as a result of insurance fraud, which in turn makes it more tempting to risk driving without insurance,” said What Car? magazine editor Jim Holder.
“For instance, at present the punishment for driving without insurance doesn’t fit the crime. Around 5% of drivers are estimated to be on the road without insurance but when a typical fine if they get caught is £200 and six points on their licence, you can almost understand the temptation. Young drivers with clean licences typically pay over £2,000 for insurance.”
source: www.shropshirestar.com
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