In other recent articles Impounded Car Insurance UK has reported how insurance costs have been failing over the last few years. Unfortunately we have some bad news for Britain’s motorists as our average car insurance premiums are set to increase.
Car insurance premiums are set to increase again due to criminal activity and claims firms aggressively pursuing cases for minor injury claims.
The latest research figures from Moneysupermarket have indicated that car insurance premiums are on the rise for the first time since 2011, with year on year averages up £32.
Fraudulent claims are a major contributing factor to the sudden increase in car insurance prices.
One of the biggest insurance companies operating in the UK, Aviva, has reported that in 2014 it received a massive 14,000 fraudulent claims. They also reported that 1 in 9 whiplash claims are involved in some form of fraudulent activity.
In the current compensation culture that we live in, it’s no surprise that insurance companies are passing the costs of these claims on to consumers. Claims firms are aggressively marketing their services and as a result many more people are receiving compensation for accidents, even if they are not legitimately injured.
An entire industry of companies has been created that target motorists who have been involved in an accident and convince them to make a claim. With employees of these companies being driven by high targets and bonus schemes for referrals it’s no wonder that with a little pressure, people involved in minor incidents are submitting claims for injuries.
Add these payouts to those that are a result of criminal activities, such as accidents that are caused on purpose by organised gangs and the cost to the insurance industry is enormous.
