First time driver news
13/05/2011
Drivers hit with pricey car insurance premiums
Over 80% of drivers, including many with first time car insurance, have seen the cost of premiums rise over the last year, according to a What Car? poll.
While the average motorist has had to pay 33% more for car insurance this year than last, some have been hit with even greater price increases.
A significant proportion of drivers have been unable to find cheap deals, despite spending long hours scouring the market via the leading price comparison websites.
One young driver informed the BBC that he "went on both the price comparison sites that advertise on TV and one of them quoted me over £6,000".
The Association of British Insurers (ABI) claims that three factors are having a bearing on the rising costs of cover: uninsured drivers, fraudulent claims and personal injury claim expenses.
What Car? acknowledged that the government was thoroughly investigating each of these issues. However, they pointed out that the matter must be addressed urgently, as motorists shouldn't have to bear the cost of criminal activity.
The What Car? magazine editor 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."
It is thought that harsher penalties might be imposed upon drivers who choose to go without first time car insurance in the future.