06/05/11
By Shane Gladstone
A poll has claimed that some motorists are being hit with a significant rise in the cost of car insurance.
The What Car? survey found that more than 80 per cent of drivers were forking out more for their insurance than they did in 2010.
This was in sharp contrast to the other end of the scale - where only 16 per cent had paid less for their cover.
Around 32 per cent of motorists were trying to get to grips with a rise of more than a third. The average rise was 33 per cent.
What Car? found a 25-year-old man whose insurance had gone up 77 per cent to £1,520, more than what his Skoda Fabia was worth.
In another case an 18-year-old girl was asked to pay £4,250 for her Ford Fiesta, an increase of 52 per cent on her premium last year.
Neither driver had made a claim in the past 12 months.
What Car? said the Association of British Insurers blamed the vastly increased premiums on three main things: uninsured drivers (who add on average £30 a year to a policy); fraudulent claims (£41 a year) and legal fees incurred in settling personal injury claims (£41 a year).
What Car? said while all three issues were the subject of increasing legislation and government inquiry, it was calling on the authorities to act faster and more efficiently so innocent motorists do not keep on paying for criminal activity.
"We're in danger of getting caught in a catch-22 situation, where insurance premiums rise as a result of insurance fraud, which in turn makes it more tempting to risk driving without insurance," said What Car? magazine editor Jim Holder.
