Rise In Accident Claim Cases Causes Increase In Insurance Premiums
Many are struggling to comprehend the soaring prices of car insurance as premiums have continued to soar.
A rise in premiums of up to 40% has left many drivers flabbergasted, as the price of ensuring their car broaches £1000.
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.
This article examines why the increasing popularity of the road traffic accident claim is playing a huge part in the escalating cost to buy motor insurance in the UK.
A Litigation Culture
In the past there has not been a particularly strong history of litigation in the UK.
In the past, an accident claim would only be sought in the most extreme of cases.
It is perhaps fair to say that those who pursue accident claims in minor cases have been widely chastised.
This, once a widely held view, appear to have changed as the UK’s litigation culture appears to resemble something more like the United States.
As a result insurers are now paying out more in compensation claims than ever before, which means they must charge their customers more to cover the costs.
Exaggerating Claims
Perhaps the main problem is the people out there who are exaggerating their injuries so that they can 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.
The benefit of this is that they are likely to receive a larger amount in the event that they are successful in their accident claim.
Again, these larger payouts mean that insurers are faced with no choice but to increase the prices of their insurance policies.