The car insurance premium was high with 38.2 per cent in 2010 and expected to go further in 2011. The insurance industry experts are saying that due to years of unprofitable trading, the insurance companies are rising the premium charges for their insurance policy. Due to the fraudulent claims, uninsured drivers and personal injury claims, the companies pay around £123 in claims while collect just £100 in premiums.
The high fuel costs and increased VAT upto 20% has resulted in great struggle among the UK households for the living. The increased job insecurity and benefits cuts has further hit the financial balance in every house and further the riding cost of car insurance in 2011 has developed the fear among the motorists. Another ingredient that causes the rise in prices of the premium is the extra claims due to the recent winter weather. It is anticipated that the car insurance prices will rise further upto 20% in 2011.
The underwriting manager at Lloyds suggested that the insurance industry is trying to balance out the loss that it makes during part 15 years by increasing the premium charges sharply. Therefore, the motor insurance premium charges will keep on increasing. The head of one of the motoring companies told that though the insurance premium cost is rising but it has lost its momentum, which is very much clear by the decline in the prices of the insurance premium in last two quarters of 2010.
Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other ...
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