Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 16th of January 2018
July 30, 2009

Motor premiums soar on fraud and personal injury costs

by Gill Montia

Story link: Motor premiums soar on fraud and personal injury costs

Motor premiums soar on fraud and personal injury costs

New research from AA Insurance shows that car insurance premiums are rising at a faster rate than at any time since 2000.

According to the insurer, Comprehensive cover increased to an average £778.13 at the end of June, up 3.5% from end March and showing an 11.3% rise on a year earlier.

For Third Party Fire & Theft, the average premium stood at £968.22, having jumped 4.6% during the three months to the end of June and 6.9% over the previous 12 months.

Fraud and higher personal injury and legal expenses claims are largely to blame, plus the bill footed by honest drivers for uninsured motorists involved in accidents.

AA Insurance director, Simon Douglas, comments: “Last year I predicted that we would see premium increases of 10% or more and current evidence supports this.”

He adds that he doesn’t see the upward trend easing.

The AA is also reminding UK motorists heading across the Channel that they could face a roadside saliva drug test if they are caught not wearing a seat belt or speeding in France.

As part of a campaign to reduce the country’s road casualty toll, French authorities have adopted a more aggressive stance against driving while under the influence of illegal drugs.

According to the AA, penalties are severe and offenders risk going to prison for two years and a fine of €4,500.

 

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