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......as firms fear bigger court injury payouts
Young drivers could see hundreds of pounds added to their insurance premiums as re-insurers fear that a court ruling could push up costs for underwriters by more than 20 per cent. The cost of this 'insurance for insurers' has risen sharply due to a change in the way that courts are compensating car crash victims, a report in the Financial Times claimed. In previous years insurance premiums have soared due to the cost of fraudulent whiplash claims being passed on to customers – with a 60 per cent rise in personal injury claims since 2006.....More on this story here; Motorists hammered with further insurance increases after re-insurers fear court rule change
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'On a cold December morning in a car park, I smashed my VW Polo into the back of an old Volvo, causing nearly £2,000 worth of damage to my car. Parking never was my strong point'. However, actually behind the wheel was Jim, an expert driver who has worked as both James Bond and Indiana Jones's stunt double. And our exercise was to put the car insurance market to the test, as part of a Dispatches documentary on Channel 4. Along with most drivers, I've seen my car insurance premiums creep up steadily in recent years – well above the rate of inflation. Over the past four years the average annual premium has increased by 89pc to £840, according to the AA. Whenever I have made inquiries, insurance companies have told me that it is not their fault. First, there was the scandal of false whiplash claims. According to the Association of British Insurers (ABI), every year 570,000 people put in claims for whiplash – an injury that is notoriously difficult to prove or disprove. This drives up premiums by a total of £2bn, adding £90 to the average driver's premium. Fraudulent motorists are to blame and the good guys pick up the tab, the insurance industry insists.
Read more on this story at AAD Blog pages: Insurers cash in on your crash