I have come across an interesting article titled “Car insurance rising at record rate”. This story dealt with the research finding that the cost of car insurance in the UK is rising at record rates. Most car insurers have increased the car insurance premiums of clients –and more increases are expected!
Without digging too deep into the numbers, I would like to mention just 2 interesting facts:
- The average cost of comprehensive car insurance had risen from £721 a year ago to £821 now.
- Car insurers were currently paying out an estimated £110 in claims and costs for every £100 they received in premiums.
Of more interest for us on this Blog is identifying why these costs have escalated at these alarming rates. On the Car Insurance Blog we have recently written several blog posts on getting cheaper car insurance. We would also like to share the findings and reasons why car insurers are finding it difficult to reduce insurance premiums:
- Car insurers are facing fast rising costs and reserves for paying claims are depleted.
- Investment income has fallen, largely because of the recession and downturn in financial markets.
- There are rising costs of personal injury claims.
- There is a rise in the number of uninsured drivers on the road.
- Fraudulent claims cost the insurance industry in excess of £1.9 billion last year.
- There has been a 15% jump in the number of thefts of upmarket cars, with thieves often first stealing the keys.
- Types of Car Insurance Fraud
- Guard against Car Key Theft