A poll by What Car? Magazine has revealed that the vast majority of motorists have been paying more for their car insurance in the last year.
Their poll revealed that 80% of motorists are now paying more for their car insurance than they were a year ago, compared to just 16% who are paying less.
When asked, 32% of those who were paying more revealed they were now paying over a third more, with the average premium increase being 33%.
The survey revealed some shocking increases, including an 18-year-old girl who was asked to pay 52% more for her Ford Fiesta, a massive £4,250.
A 25-year-old man was also asked to pay £1,520 for his car insurance, up 77% on the previous year and to a rate more than the value of his car.
Amazingly neither of the two examples has made a claim in the past 12 months.
The increases were blamed on three different factors by the Association of British Insurers.
Legal Fees associated with settling personal injury claims accounted for an extra £41 a year, fraudulent claims an extra £41 a year and uninsured drivers who added a further £30 a year.
What Car? Editor, Jim Holden said, “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.”
“For instance, at present the punishment for driving without insurance doesn’t fit the crime. Around 5% of drivers are estimated to be on the road without insurance but when a typical fine if they get caught is £200 and six points on their licence, you can almost understand the temptation. Young drivers with clean licences typically pay over £2,000 for insurance.”