Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of January 2018
September 5, 2010

Fraud fuels 31% hike in car insurance premiums

by Gill Montia

Story link: Fraud fuels 31% hike in car insurance premiums

Fraud fuels 31% hike in car insurance premiums

The AA has named fraud as a major contributor to a 31% increase in car insurance premiums, over the past 12 months.

According to the motoring organisation, the typical cost of fully comprehensive cover currently stands at £704, premiums having risen at their fastest rate since records began 16 years ago.

Furthermore, premiums for younger drivers are rising at an above average rate, with those aged under 30 having to accommodate an 11.5% hike the past quarter alone.

AA Insurance director, Simon Douglas, comments: “While the organised ‘cash for crash’ scams that ripped millions of pounds off insurers have made headlines, the problem of car insurance fraud is much deeper and has become one of the principal drivers of insurance premium inflation.”

Last week, Co-operative Insurance suggested that the UK’s honest motorists are paying £1.25 billion a year to support the activities of dishonest drivers.

According to research from the insurer, the average car insurance premium carries a £50 penalty to cover costs incurred by uninsured and fraudulent road users.

 

News posted:



Related stories to Fraud fuels 31% hike in car insurance premiums: