The Car Hub

Gone are the days of cheap car insurance. The AA (Automobile Association) reports that fully comprehensive car insurance on average in the UK has now passed the £1000 mark.
In the last quarter of 2009 alone average premiums rose by 7.2% making a total annual increase of 18%.
The main reason for this huge annual increase is the ever increasing cost to settle the repair side of the claim added to which is the current trend for a claim for even the most minor personal injury.
These increasing personal injury claims are blamed on the “no win-no fee” lawyers who encourage everyone to make a claim well knowing their (sometimes inflated) fees will be paid by the third party insurer.
Prior to this last winter the actual number of accidents on British roads was falling but the winter weather has resulted in a 30% increase in claims.
The UK insurance industry in late 2009 decided to increase motor premiums overall as profit margins were just not there anymore. For motorists the gloom will continue as one insurer, Zurich, has already announced it is planning a 20% increase of premiums before the end of April.
Perhaps some research ought to be carried out regarding the separation of car insurance from the personal injury insurance to suit the motorist.
Bill Williams