Increase in car insurance premiums?

Drivers here in the UK have been warned that they may face a rise in car insurance premiums as there has been an increase in the number of claims due to injuries caused by car accidents.

Increase in the number of whiplash and injury claims may increase car insurance premiumsIn the past 12 months such claims in the UK in % terms have exceeded those in America.

Since 2010 car insurance premiums have risen by 40%.

Car drivers have been forewarned that further increases in car insurance premiums can be expected so that insurance companies can cover the increased cost of injuries claims.

Although claims for car accident damage reduced by 5% when comparing figures for 2011 with 2010, perhaps because people were driving less frequently due to the recession, there was an 18% rise in the number of claims from people claiming to suffer whiplash injuries or being hurt and that was the largest increase ever seen. Car insurance companies have paid out an extra 9% of claims.

The Institute and Faculty of Actuaries who produced the annual report discovered that more claims were made in locations that numerous claims management companies work such as Wigan, Manchester, Liverpool, Sunderland and Oldham.

Lowest car insurance claims involving injuries due to a car accident were in the likes of Dorchester, Aberdeen, Exeter, Cambridge and Kingston upon Thames.

David Brown is the Institute’s Chairman and stated: “The increase in costs to insurers is likely to result in a rise in motor insurance premiums for drivers.

“The clear correlation between claims management office locations and the ‘hotspots’ for bodily injury claims suggests the two are interlinked. We expect to see legislation coming soon which will affect the way these companies do business.”

So, when you are looking to renew your car insurance why not get a number of quotes from several different insurers. One way of doing this is to go on the Internet and visit a car insurance price comparison website as they have access to many car insurance providers.

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