This bank holiday millions of motorists will be taking to the roads in search of a day out, resulting in the inevitable delays and accidents on the British roads. It’s prudent then that the AA announced last week that car insurance premiums have risen by more than 1% in the last three months, and are expected to rise further this year.
The British Insurance Premium Index from the AA showed the increase, which represents the first time in years that car insurance premiums have increased in the first quarter. Car insurance premiums have gone up by approximately 11% in the last year.
The AA placed the blame for increases in insurance premiums firmly at the door of personal injury compensation claims, thefts and fraudulent claims.
Simon Douglas from AA insurance stated:
Figures issued by the Association of British Insurers show that the value of detected fraud rose by 30pc last year. Insurance cheats add an estimated extra £40 to the average premium paid by honest motorists.
In addition, theft claims for modern expensive cars, where thieves first steal the keys by either robbery or burglary, rose by 15pc over the six months to April, compared with same period last year. Personal injury claims and their associated legal costs also continue to rise, especially as the recession takes hold.
The AA claims that insurers are currently making a loss, paying out £105 in claims for every £100 they receive from premiums, meaning insurance premiums are sure to rise steeply over the next few months.
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