Leading insurance provider the AA has claimed that many drivers are now facing annual insurance premiums of more than one thousand pounds as a result of the increasing number of accident claims being lodged.

In the final quarter of 2009, the AA reported a rise of more than seven percent on the average cost of car insurance policies – a record increase over a three month period. This has led to some drivers having to fork out more than a thousand pounds during the course of a year in order to cover their car insurance costs.

The result was even higher on price comparison websites, whose average results turned in a rise of almost thirteen percent on comprehensive insurance cover and third party, fire and theft premiums. Overall, some motorists have (more…)

The cost of car insurance has been increasing recently and providers of car insurance are complaining that insurance fraud and whiplash claims are compelling them to make motor cover more costly. It is increasingly important that we distinguish between fraud and legitimate claims.

The Automobile Association (AA) has claimed that it is struggling to make a profit through its insurance arm. For example, Simon Douglas, Director of AA Insurance, told The Times that British drivers were more likely to make whiplash claims than in the past. Mr Douglas stated:

“This is encouraged by personal injury claims lawyers, whose marketing urges people to make claims and whose costs, as well as compensation for the claim, are met by (more…)