Car Insurance Premiums on the Rise
According to a survey, Car Insurance premiums are climbing up at an unprecedented faster rate since 2000. AA Insurance reveals that faking injury for getting compensation and fraud mean that the insurers had to pay more than usual and this increase in payment for the insurers made them demand higher car insurance premiums from the motorists. The average annual comprehensive car insurance policy surged to £778 between April and June, which is an increase of 3.5% compared with the previous three months. This lead to an overall increase of 11.3% in the average annual comprehensive car insurance policy compared to the same time last year.
Younger drivers
The average third party policy surged to £968 between April and July, which is an increase of 4.6% compared with the previous three months. The heavy increase in price badly affected young and inexperienced drivers, who are the major buyers of third party, fire and theft policies. AA Insurance director Simon Douglas said that underlying premiums are increasing at a lightning speed that is never seen since the beginning of this decade. The insurance company also opined that underwriting losses needs to be accounted by the industry and expenses also need to be covered by it for detected fraud and uninsured drivers who have accidents.
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