Vehicle insurance premiums have rocketed
August 9, 2007
Drivers in the UK are suffering more than ever when it comes to extortionate vehicle insurance premiums, with insurance costs going up by more than 100% in the past thirteen years according to recent reports.
There are a number of factors that have resulted in these massive rises in insurance premiums, and this includes the cost of repairing new cars, damage caused by drivers that are not insured, inflated insurance claims and fraud, and even claims made against insurance companies by the wide range of no win no fee firms that are in operation these days.
The average cost of fully comprehensive cover is now around £822 according to data from the AA, and this follows a rise of 2.5% in vehicle insurance premiums in the first half of this year. The AA added that according to its figures today’s average fully comprehensive cover cost of £822 compared to an average fully comprehensive cover cost of just £408 in 1994. However, it is not just fully comprehensive insurance cover that has rocketed – this has happened with all levels of vehicle insurance cover.
Third party, fire, and theft cover came in at an average premium of £1006, which means that for the first time the average cost of this level of cover has exceeded £1000. This is a level of cover often taken by younger drivers and those with past claims, as it is generally cheaper than fully comprehensive cover but offer more protection that the most basic level of cover, which is third party only.
An AA spokesman spoke of one of the reasons for these rising premiums for UK drivers, stating: ‘Although police are starting to tackle uninsured drivers, there are still a lot of them out there. If they are involved in an accident, the claims have to be settled by the Motor Insurers Bureau, which gets its funds from the insurance industry. So in effect each honest motorist is subsiding uninsured drivers to the tune of about £30 a year.’
Alan Wright
9th August 2007
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