According to the AA, personal injury claims are becoming so common that the cost of car insurance is rising to accommodate the compensation culture in the UK. Car insurance prices are actually rising quicker now than they have done for the last ten years.

The AA state that insurance fraud and false claims are also responsible for the increasing costs of insurance policies.

The AA’s Simon Douglas stated:

Underlying premiums are rising more steeply than they have since 2000 because of rising costs.

There’s no getting away from the fact that the industry continues to suffer underwriting losses, which are predicted to be in excess of £240million this year.

As a result of false claims and personal injury claims, some insurance companies have withdrawn the option of third party insurance, and just 50% of insurance companies say they’ll offer insurance for young drivers under 21 years of age.