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:
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.