If you've recently renewed your car insurance, and let's face it, you must have done within the last 12 months at least, then you will have noticed that your premium has gone up whether you are insuring for personal use or taking out business car insurance and even with an extra year's no-claims bonus. Despite this, insurers are claiming that they're still losing money. This is down to an increase number of fraudulent claims and the personal injury claim culture. According to one study, almost half the money you give to the insurance company goes on whiplash claims, fraud, legal fees and taxes. Whichever way you cut it, it is honest drivers who are footing the bill. Below are some of the main reasons:
Uninsured drivers
Recent statistics show that approximately one in 20 UK motorists is uninsured. Not only do these drivers cost honest drivers about £30 a year on their premium, but they are also far more likely to be involved in accidents, fraudulent claims and other criminal activities. The maximum fine for this offence is £1000, in theory. In practise, the fine is around £200, which is significantly lower than the average cost of insurance - you are likely to be fined more for not having a TV licence.
Personal Injury Lawyers
We've all seen the aggressive TV adverts offering no-win, no-fee services for any kind of accidents. These companies often represent those who have been involved in car crashes. In fact, it is estimated that these kind of claims have doubled in the last year - and the companies even run loyalty schemes to claimants who recommend their services to other family members. These claims now account for 10% of the premium a motorist pays to stay legal on the road.
"Whiplash" claims
Whiplash has become a favourite pseudo-injury among those committing insurance fraud. Because it is so difficult to find real physical evidence beyond the sufferer's pain, these claims have rocketed and now account for an eye-watering 20% of the insurance premium. What's more, it costs the NHS £18 per patient in consultation fees, coming to £8 million a year. All this is in contrast to official government statistics which shows that slight injuries in road accidents have actually fallen in recent years.
Fraud
Another way of claiming money off an insurance policy is to stage a car accident in order to claim compensation for the injuries incurred. This costs £44 on the average policy. These accidents begun in inner-city areas but have now spread all over the country - this is because premiums were increasing in areas where these "accidents" were common, so now the cars are insured in low-risk postcodes instead. It is surprisingly widespread, with an estimated 1 in 20 of drivers under 35 having taken part in such an incident.
Young Drivers
If you think that you have it bad with your years of no-claim bonuses, then spare a thought for those just starting out. The AA have said that the average premium for a new driver has jumped 51%. Young drivers who want business car insurance find it hard to find reasonably priced cover. The insurance companies admit that these increases are tough on young drivers, but the stats show that they cause proportionally more accidents than any other group. The answer would seem to be that the UK introduces some sort of graduated system, similar to one in place in Canada, which would stop young drivers driving at high risk times and therefore keeping their premiums down.
Meanwhile competitive business car insurance quotes can be obtained at Specialist Risks
George is the Webmaster of various UK sites dedicated to giving UK residents maximum online choice for all types of insurance. Why not visit Endsleigh Car Insurance : for a fast online quotation today, without obligation.
Article Source:http://EzineArticles.com/?expert=George_McGonigal
Did you find this article helpful?00
Get Involved
0 commentsSuggest a topicArticle ToolsPrint this articleE-mail to a friendEzinePublisherReport this articleCite this articleStay InformedGet notified by email when new articles are added to this category or written by this author.Subscribe to New Article Alerts: Insurance: Car-Auto
George McGonigal
Car Auto Article FeedFind More ArticlesSearchSimilar ArticlesWhat is Business Liability Insurance and Why is it Important?Business Car Insurance is DifferentBusiness Car Insurance - GuidelinesWhat You Ought to Know About Business Car InsuranceBusiness Car Insurance - Getting the Lowest Rates PossibleWhy You Need Business Auto InsuranceThe Benefits of Business Vehicle Insurance and Who Needs ItBusiness Vehicle Insurance - 5 Tips to Save MoneyBusiness Automotive Insurance - Choose the Correct CoverageStarting a Car Rental BusinessRecent ArticlesWhat You Need To Do To Obtain Cheap Car InsuranceReasons Why Men Are Better Drivers Than WomenHow Little Lies Can Cost You DearlyChoosing A Car Insurance Company To Insure Your Car WithDoes Credit Affect Insurance Rates?Facts On Cheap Young Driver Car InsuranceThe Benefits Of Online Comparison Shopping For Your InsuranceInformation About Connecticut Car InsuranceSave Money by Comparing Cheap Car Insurance Quotes OnlineWhen Was Car Insurance Invented and Why?Submitted On March 05, 2012. Viewed 4 times. Word count: 600.MLA Style Citation:McGonigal, George".".5 Mar. 2012EzineArticles.com.14 Mar. 2012
McGonigal, G. (2012, March 5). . Retrieved March 14, 2012, from http://ezinearticles.com/?The-Rising-Cost-of-Motor-Insurance&id=6921706Chicago Style Citation:
McGonigal, George "." EzineArticles.com. http://ezinearticles.com/?The-Rising-Cost-of-Motor-Insurance&id=6921706
EzineArticles.com© 2012 EzineArticles.comAll Rights Reserved WorldwideAbout UsFAQContact UsMember BenefitsPrivacy PolicyShopSite MapBlogTrainingVideo ArchiveAdvertisingAffiliatesCartoonsAuthorsSubmit ArticlesMembers LoginPremium MembershipExpert AuthorsEndorsementsEditorial GuidelinesTerms of ServicePublishersFollow UsTerms Of ServiceEzines / Email AlertsManage SubscriptionsEzineArticles RSS
View the Original article
EzineArticles.com© 2012 EzineArticles.com