The real reason for rising car insurance

As solicitors specialising in personal injury claims, including road traffic accidents, we often come in for criticism when car insurance premiums go up. Indeed some insurers are even telling customers that their premiums are increasing because of “claims” or the so called “compensation culture”.

However one large insurance company has now revealed that this simply is not the case.

The company, who has insisted on remaining anonymous, has admitted that it did not need to raise its own prices but has done so anyway to stay in line with other insurers. The company admitted that by increasing its premiums it was making even bigger profits. It claimed that if it kept its premiums at a reasonable level it would be too cheap and risked being inundated with too many new customers.

The Office of Fair Trading is currently investigating why car insurance premiums have risen so much in the last two years. A survey of AA members has found that premiums have risen by as much as 40%, with young drivers particularly badly hit.

Meanwhile two separate reports commissioned by the government have proved that the UK’s so called “compensation culture” is a myth and does not exist.

So if your car insurance premiums have increased it is the insurance industry itself that is to blame not innocent accident victims.