High Motor Premiums: The Reasons Why

For those of you that drive you will no doubt have become aware of the rising cost of motor insurance. So with the recession in full swing it might seem to those on the outside that insurance companies are taking advantage. Of course it is illegal to drive without insurance so many motorists will have no choice than to pay above the odds for their insurance.

However it is not the insurance companies making a lot of money from raising the premiums. Even with premiums on the up motor insurance is not as profitable as it once was. In fact the actual reason that motor insurance costs more now than before is due to more people claiming compensation for whiplash due to an accident they have been involved in.

To most people it would seem sensible that with rising accident compensation claims you would of course expect there to be more accidents on the road. This makes sense as with more accidents a greater number of people would then be seeking compensation for injuries sustained. Taking data for the last three years you will get a different story that shows traffic accidents decreasing rather than increasing.

For the past three years in the UK road accidents have decreased by ten percent however during the same time compensation claims for car accidents have risen by 43%. Whilst there are a number of individuals that are of course genuinely injured in car accidents they are now becoming hard to separate from those who are committing blatant fraud.

Just take one look at a personal injury claims calculator and you will know why so many people have been encouraged to make a claim for compensation. In particular looking at injuries for whiplash you will see a large increase in the number of claims made because this is one of the harder injuries to prove or disprove for that matter.

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