A New Way to Put a Brake on Rising Car Insurance
If you drive a car you can hardly fail to notice that the car is a very expensive hobby. But it’s not just pain at the pumps you need to worry about, your insurance renewal quote is probably the misery, with an average cost increase of 34 percent to 845 pounds per year. Young drivers are the most affected, have seen premiums rise by58 percent to a stunning £ 2,251 on average in the past year.
Insurers have come under fire for allegedly encouraging MPS injuries after accidents. These claims are one reason insurance costs are increasing so fast.
MPs published a report calling for greater transparency about the “merry-go-round of the referral payments – where insurers to sell details of car rental and vehicle repair after smashes and get paid.
Insurance companies also sell about addresses and phone numbers to personal injury lawyers. This culture has led to dramatic increase in injury in recent years, the number of claim snow far exceeds the number of accidents.
Honest drivers are paying the price. According to a leading insurer, if you have an assurance of 450 pounds per year, about220 pounds of the premium charged to the cost of whiplash claims, fraud, legal fees and taxes to cover.