Eight in ten motorists are paying more for their car insurance this year than they did in 2010, according to new research from What Car? magazine.
Although What Car? analysis shows that car insurance premiums rose by 33 per cent on average, the study found that in practise the cost of motor insurance shot up by more than this for over half of the drivers surveyed.
What Car? found that a 25-year-old male Skoda Fabia driver would be paying 77 per cent more this year than last and an 18-year-old female Ford Fiesta owner could expect to pay 52 per cent more.
The Association of British Insurers (ABI) said the steep price hike could be attributed mainly to fraudulent insurance claims, uninsured drivers and the cost of personal injury claim legal fees.
The research follows figures released by the AA recently which suggested that car insurance premiums have shot up by an average of 40 per cent – the steepest increase since it began tracking premium prices.
What Car? editor Jim Holder commented, "We're in danger of getting caught in a Catch-22 situation, where insurance premiums rise as a result of insurance fraud, which in turn makes it more tempting to risk driving without insurance."
He added that the punishment for driving without insurance – typically a £200 fine and six licence points – did not reflect the crime.
Financial News
