Claims costs push up premiums, says AA

The cost of car insurance premiums is rising because of the increasing cost of paying out on claims, it has been suggested.

According to the AA, car insurance providers now have to pay more money to repair cars damaged in accidents.

The company says that this is because vehicles are now made with hi-tech components that are more expensive to replace.

However, the AA also notes that the UK has dropped from pole position in terms of European road safety to third place between 2001 and 2006.

Ian Crowder, public relations manager for the AA, claims that this is not a major factor in the increase in car insurance prices.

Instead, he laid some of the blame at the door of “ambulance-chasing-type insurers which you can see on daytime television”.

According to Mr Crowder, these are fuelling an increasing number of personal injury compensation claims, which are costing insurers more money.

In related news, a study by car insurance provider Churchill has found that 30 per cent of drivers would accept a spouse’s penalty points if they were in danger of being banned from driving.

© Adfero Ltd

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