Inexpensive Auto Insurance

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Accident Claim Cases Cause Insurance Premiums To Soar

Many are struggling to comprehend the soaring prices of car insurance as premiums have continued to soar.

Some figures suggest that prices have risen by up to 40% and the average premiums of single car insurance are approaching the £1,000 mark.  
The worst affected by this hike in pricing are young drivers, which is unfortunate because these are the people least likely to be able to afford it.  

In this article, we will explore how a rise in accident claim cases has affected our car insurance premiums.

A litigation culture

In the past there has not been a particularly strong history of litigation in the UK.  

There was a time when an accident claim would only be sought after in the most severe of cases.  

Those making an accident claim for minor incidents seem to have been roundly chastised.  

This view now appears to be a thing of the past, as the UK’s litigation culture has come to resemble that of the United States.  

Insurers, as a result, are paying more out than ever in compensation claims, subsequently meaning they have to charge more to cover costs.  

Exaggerating claims

There is certainly a case to suggest that some people are exaggerating their injuries so that they can cash-in and make an accident claim.  

The latest figures show that around 10% of all UK drivers would consider exaggerating or even completely making up an injury following an accident that wasn’t their fault.  

It is easy to see why people are tempted to exaggerate their injuries in the interest of making money.  

As long as this is accepted within our culture, our car insurance premiums will continue to change. 

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