Automotive

Published on November 16th, 2014 | by neil

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What Is It That Bumps Up The Price Of Your Car Insurance Premiums?

In the UK, as with most parts of the world, insurance is a necessary evil when you own a car. If you ever have an accident, or someone steals your car, your insurance cover will pay out for the cost of any repairs or replacements.

 Car insurance is an accepted motoring cost by most people that drive their vehicles on public roads. The sad truth is that car insurance is a sore point for some motorists, and there is one common reason this is so: cost.

 Over recent years, car insurance premiums have gone up to significant levels. These days car insurance is so high for some folks that they have to give up driving altogether! That’s because they can’t afford the premiums.

 Insurance bodies in Britain will tell you that the price of insurance has gone down this year. However, the premiums that people pay will tell you otherwise. So why is car insurance so expensive in the British Isles? Here are some of the main reasons why.

 Uninsured drivers

 We all know that car insurance is quite high in the UK. Some drivers think that they can get away with driving without valid insurance cover. And they use the high cost of insurance to justify their actions.

 That is bad news for legitimate motorists. If we ever have an accident with an uninsured driver, our insurers cannot claim for any non-fault costs from the third party. All car insurance firms offer payment by monthly Direct Debit. So there isn’t an excuse not to have valid cover.

 Fraud

 Insurance fraud is rife in the UK. And it’s a big problem not just for the car insurance industry but the whole insurance sector. Around £20 million worth of dodgy claims get unearthed each WEEK in Britain.

 Insurers have two choices. They can either write off (excuse the pun) those costs and soon go bankrupt, or they can pass on those costs to you, the motorist. I’m sure you know what insurers have chosen to do!

 As you can imagine, motorists aren’t too happy about covering the cost of people’s dodgy claims. Especially as car insurance is a legal requirement here in Britain and isn’t something you can elect not to have.

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Source: Flickr

 At the moment, there are two types of car insurance fraud that are the main culprits:
  • Whiplash. When the car you are in has a rear-end collision with another vehicle, you can end up doing damage to your spine. Whiplash claims are sometimes made even though such a collision hasn’t occurred;
  • Staging. This is where a car accident gets caused on purpose by people seeking to commit car insurance fraud. Examples include cars that come to a deliberate stop on a fast-flowing dual carriageway.

 Ways to get cheaper car insurance

 There are plenty of ways to get cheaper car insurance. For instance, you could trade your car in for a more insurance-friendly model. Places like www.motorlinedirect.co.uk sell insurance-friendly cars.

 You could also make sure you use comparison sites like Go Compare when getting quotes. That way, you can get the best deal for your insurance.

 Thanks for reading.


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