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Are Car Insurance Prices on the Rise?

 

Premiums for car insurance are due to be rocketing later on in the year due to reforms by the Justice Secretary Chris Grayling, have not had an impact on fraudulent claims, an organisation has said.

 

The AA recently published figures that showed the average quote over the first three months of 2014 were more than £100 cheaper than that of the same period last year.

 

This fall was because of insurers that were competing for business as they anticipated effects of new measures that combat false whiplash claims, along with some other motor insurance scams. Though it was predicted that soon the premiums will go into reverse, with rather sharp rises hitting motorists from July onwards.

 

A spokesperson for the AA said that it is their best guess that they will in the current quarter level off and start to rise in the third, even saying that they could start rising rather steeply. At the moment it is great for the consumer, though insurers have said that it cannot go on and it is madness. The spokesperson also went on to say that the falls that they are experiencing at the moment have been happening for three years and that the rate of the fall has been accelerating.

 

This was mainly created by the Ministry of Justice reforms that were proposed and the insurers also dropped premiums as they started to anticipate a return. The return has however not been delivered. There isn't any evidence that this is delivering any significance in the reduction in the value and number of personal injury claims.

 

Aviva the insurer earlier this week explained that it has uncovered 19% increase in fraudulent insurance claims year on year, which were allegedly being driven by organise gangs and a lack of deterrents that are effective. The company reported over £110,000,000 in motor insurance fraud in 2013, marking a 19% increase in comparison with the year before.

 

The latest figures from the AA said that in the first quarter of this year, the comprehensive motor insurance average figure for shop around that involve quotes across a number of markets, plunging to £531 and down by 16.6% on the figure for the same period the year before.

 

In the first part of the year, young drivers who have to pay the most for their insurance, enjoyed the largest dips in premiums for the first part of the year, with falls of around 20% for 17-29 year olds.