By Elliot Wright, 25th January 2010
Motorists are bracing themselves for a mammoth 15% hike in car
insurance premiums this year - and a surge in no win no fee
personal injury compensation claims could be to blame.
According to market research firm Consumer Intelligence, the
average annual premium of £564.19 could rise to £648.82 by January
2011.
The inflation-busting increase is expected to cause grief among
hard-up motorists who have already seen a 20% increase in insurance
costs over the past year as well as rising fuel costs and
inflation.
Experts are blaming the rises on an increase in the use of
no-win no-fee lawyers - often referred to as 'ambulance chasers'-
that advertise on TV as more and more victims of accidents make
personal injury compensation claims.
In addition, the recession is causing more people cut to costs
and choose to drive uninsured - pushing up the premiums of
law-abiding motorists.
It is estimated that 1.6m drivers are uninsured, which leads to
an increase of £30 per policy for those that do pay.
Will Thomas, of price comparison website confused.com said:
'People will get a shock. Prices have been kept artificially low
because the market is so competitive. But now they will have to
rise because of the increase in personal injury claims, thanks to
injury lawyer ads on the television.'
It is estimated that 1.6m drivers are
uninsured, which leads to an increase of £30 per policy for those
that do pay.
17-to-24 year olds have seen the biggest increase in premiums,
with the average price going up almost a quarter to £1,489. While
the drivers over 65 years old have seen the smallest rise with
costs going up 15% to an average of £423.
Those paying the least for insurance are 55-to-64 year olds, who
pay an average of just under £376 annually.
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Mr R Evans 11 Nov 2010