Hike in Insurance premiums expected as Car claims increases

Over the last year UK claim rates have even overtaken those in litigation-crazy America, a shock new report reveals.

While the number of car accident damage claims fell by five per cent as cash-strapped motorists drove less, the number of Brits claiming to be hurt or suffer whiplash in crashes has soared by 18 per cent from 2010 to 2011 — the biggest rise ever recorded.

And payouts are also up by an average of nine per cent.

But the annual report from the Institute And Faculty Of Actuaries found claim rates are far higher in areas many claims management companies operate. These “claims clusters” include Oldham, Liverpool, Manchester, Sunderland and Wigan.

Injury claim rates were lowest in Aberdeen, Kingston upon Thames, Dorchester, Cambridge and Exeter.

Motorists have seen insurance premiums rocket by 40 per cent since 2010.

And drivers have been warned that costs will rise even further so insurers can foot the increased injuries bill.

The Institute’s chairman, David Brown, said: “The increase in costs to insurers is likely to result in a rise in motor insurance premiums for drivers.

“The clear correlation between claims management office locations and the ‘hotspots’ for bodily injury claims suggests the two are interlinked. We expect to see legislation coming soon which will affect the way these companies do business.”

 

Source: The Sun News