Fraud, teens drive record increase in insurance premium - Car Rental News
Fraud, teens drive record increase in insurance premium
Car Rental News - 08/11/2010
Premiums are up by as much as a whopping 50 per cent.
UK drivers are seeing their automobile insurance premiums increase this year by record amounts. In some cases, premiums have risen by as much as 50 per cent.
According to experts, the whopping increases are a result of expanding ‘crash-for-cash’ fraud and teenage drivers being insured on their parents’ policies. This increasing tendency for middle-aged Brits to have their car insurance cover their teenage children is a big part of the huge cost increases.
In one sobering example of the massive increases in insurance premiums, premiums for male drivers between the ages of 17 years and 22 years are up by 51 per cent. The average annual premium for drivers in this group is now at £2,500.
Even for middle-aged parents who have their children insured on their policies, this year’s premiums are up by a painful 39 per cent, at an average of £792. However, were parents to pay for separately insuring their 19-year-old son on his own three-year-old Ford Fiesta, they would have to fork out £1000 for the year.
This is the biggest annual rise in insurance premiums since the AA began indexing premiums in 1994. Tomorrow, the heads of insurance companies will face severe questioning at the hands of Members on the Commons transport committee. MPs will want to know why premiums have risen so drastically in the last year.