Car Insurance Premiums Doubled

premium-rise

It has been found that motorists are paying out record amounts for insurance on their cars with premiums doubling during the past 13 years. But why have the premiums doubled?

It all comes down to two items, crashes which are caused by uninsured drivers and the increase of cost to repair a new car. Another major aspect which contributes is the cost of treating survivors involved in accidents. Claims for whiplash or personal injury are on the rise and this is probably due to the boom in “no-win, no-fee” legal firms who are hot on the heels of victims of crashes urging them to make a claim.

The average car insurance premiums have rose by 2.5 per cent during the three months up to the end of June. Now the cost of comprehensive cover on an average car will cost about £822 for the year! The Insurance Premium Index was launched in July and when it launched the average, annual and comprehensive cover of a car would be £408.

For those who are not choosing to go fully comprehensive then third party, fire and theft insurance is an option. Usually chosen by higher-risk drivers or young drivers who do not have any no-claims bonus it was this year that the premium broke through the £1000 barrier and rose to on average £1006. Unfortunately the AA has warned that it is highly likely that there will be further rises due to the cost of claims outweighing the growth in premiums.

The most annoying thing as an insured and honest driver is that although police are tackling uninsured drivers there still are many on the roads and if they are involved in an accident then the claims have to be settled by the Motor Insurers Bureau.

However the Motor Insurers Bureau gets its funding from the insurance industry which actually means that as an honest driver you help subsidise uninsured drivers for around £30 a year.

It just doesn’t seem fair! However before you start thinking about cancelling your insurance and running the risk it is important to bear in mind the following three pointers:

  • Firstly there is new Police technology used within most patrol cars which allows them to easily notice a passing car which has no road tax or insurance. They then have the powers to impound your car and crush it. Yes, you heard me right! Your little pride and joy will be nothing more than a cute little cube!
  • Secondly if you have a crash without insurance you get yourself into trouble with the law as well as having to find enough money to pay for not only damage to your own car but damage to anyone else’s which was involved in the accident too! But that is not all – you also have to find money to pay for compensation for any injuries and pay for any property which is damaged. Could end up costing you a lot more than what it would have been to pay your insurance in the first place!
  • Finally having insurance in place is like having a safety net. Accidents are not planned, never deliberate unless it is a “crash for cash” but the majority are not. If they happen they happen but with insurance in place it puts the driver and any other persons involved back into the same financial position as if it hadn’t happened.

Could you manage without this safety net?

If the answer is no like most people then you need to ensure that as a motorist you take responsibility and insure your car. All of the cars for hire, minibuses for hire, vans for hire are covered by our insurance however a 20% discount is applied for all hires taken on customers own fully comprehensive insurance.

For more information then please contact us on 01254 970027 or email reservations@intack.co.uk

8th July 2011, 10:57