Car insurance hiked to an average of £1000 a year!

25 July 2012

car crashThe cost of driving has been on the up since time began, but lately, it seems to be something of an unfunny joke. And the news that cost of car insurance has rocketed to an average of more than £1,000 a year, isn't making the joke any funnier.

The AA British insurance premium index found that the cheapest average premium for comprehensive cover, sold directly, went up 8.5% year-on-year to £1,034. Greater Manchester and Liverpool were the most expensive regions for buying policies, with average quotes of £1,648.

The study claims that some insurance companies are putting their prices up in a bid to tackle “crash for cash” scams and “excessive” numbers of whiplash claims. Simon Douglas, director of AA Insurance, said the market was "in turmoil", adding that "significant inroads" were being made to tackle fraudulent claims.

"We expect the industry eventually to have routine access to DVLA data and the sooner this happens the better," Mr Douglas said. "It will allow fraudulent applications to be weeded out. Insurance companies are already exchanging information about people who appear to be manipulating data in order to cut the price quoted."

TOPICS:   Motoring   Scams   Insurance   High Street News

7 comments

  • Inspector G.
    I'd say that insurance has gone up since cars have had crumple zones which means they get written off in a head-on collision with an angry butterfly. It's health and safety gone mad I tell you.
  • oliverreed
    Whiplash claims aren't that massive, it's the 'where there's blame there's a claim' legal sharks and their medical expert teams that cost more than the compensation aspect, the other parties insurance companies would be better off offering you the money up front like they try to with hire cars etc.
  • Nikey H.
    Tell me about it! After all these years using public transport, I finally wanted to get a car and the cheapest insurance in £850 with Tesco and that too if I choose a 1L 96 Nissan Micra! If I get mum on a combined insurance, it jumps to £1,600! WTF?
  • Sicknote
    Even when you're body is smashed in an accident like mine and my son's was the other sides insurance preferred to run up 20K in legal bills before accepting liability. That's why insurance is so high and not crash for cash.
  • catweazle
    My wife's car was recently scraped by another car coming out of a side street, within a day of contacting our insurance, we were contacted by injury claim firm who'd obviously been tipped off by our insurance company. That's why premiums keep rising.
  • Alexis
    Routine access to DVLA data??? Access needs to be restricted, not the exact opposite.
  • James
    Alexis, you would be surprised how useful a DVLA check is for people working in Motor claims. We use it a hell of a lot to identify hit and run offenders and to combat fraud. DVLA make money out of it too, on average £4 per check we do

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment