Insurers blame motorists for car insurance hikes

Insurers blame motorists for car insurance hikes

Car insurance renewals are set to be alarming for almost everyone this year, especially if you opt to be loyal to your current provider. Premiums have been seen to be around 50% more costly than they were this time last year, and with 17 to 22 year olds bearing the brunt of an average increase of 51%, customers are in their right mind in asking the question. Why?

These increases are set for almost every policy holder, whether you’ve made a claim or not. This doesn’t make much sense for the people who have that extra year of driving experience on their licence, one more year of no claims bonus and a car that is essentially one more year older with a lower depreciated value.

Car Insurance for this Viper
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With these factors, you’d expect your premium to drop, or at least stay the same as last year, however insurance companies are blaming us, the drivers for the increase in costs.

Insurers are pinning the blame on a number of factors including:

  • ‘Crash-for-cash’ fraudsters, where some opportunists are setting up crashes to get themselves a payout.
  • Fronting. Insurers have indicated that a 39% increase over the year has been due to the number of parents putting their names down as the main driver, while their child is actually the main driver. Not only is this practice illegal, as it’s considered to be fraud, but you may find yourself with a void policy if it ever came to claiming.
  • The uninsured driver. Insurers have also indicated that the sheer number of uninsured drivers is bumping up the cost of insurance every year.
  • Personal Injury. Britain is ever adapting the compensation culture, according to insurers. With every bump and knock, no matter how minor, being considered a case to claim.
  • Britain has on average fewer crashes than our European neighbours, yet we have been known to have a personal injury claim record that is four times greater than any other country in Europe.

This high percentage increase can be more commonly seen with customers sticking with their same provider. When it comes to car insurance, loyalty very rarely pays off.

Ensure that you search around before your existing policy expires, and if you searched online at places such as MoneySupermarket and found a cheaper quote, and you’re not too keen on switching providers, you can always negotiate with your current provider, stating you’ve found a cheaper price elsewhere; you’ll be pleasantly surprised at how negotiable car insurance can be.

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