Car Insurance Costs Are Decreasing In The UK
19/08/2013
Auto insurance costs are decreasing at record rates within the United Kingdom. The insurance arm of the AA, has made some astonishing reports, regarding the rates for coverage in the area. This month, the average price for a yearly comprehensive quote for coverage, decreased to £594.00.
This is a 9.8 percent decrease, from what the costs were last July. Last July, the cost for an auto insurance coverage plan was roughly £659.00. AA insurance, reported this is the largest decrease in the cost of auto insurance, since 1994. Questions about what is causing this decrease are on the minds of many.
Apparently, the decrease in price was due in part by the added pressures that were put on auto insurance companies. Additional precautions are being taken in order to eliminate fraudulent claims, and place certain restrictions on claims that are being made as well. However, despite the fact that prices for coverage, continue to decrease, premiums for coverage, still remain at a high. They are higher, than they were six years prior.
Aside from auto insurance quotes dropping, third party quotes for theft and fire, also seen a significant decrease as well. They fell 4.8 percent, putting an average policy for this type of coverage, in the ballpark range of £820.00, according to research conducted by AA insurance. Joe Lyman, who is a BBC business correspondent, stated that the 9.8 percent decrease in costs, follows a 6.4 percent decrease over the course of 2012.
However, despite, these incredible decreases, Joe Lyman, added that the cost for insuring a motor vehicle, is twice as much as it once was, back in 2007. It kind of puts the industry in an oxymoron situation with prices falling, but costs increasing.
During the beginning of April, there was a new ban that was introduced to the markets. This ban placed bans on referral fees. These fees were typically paid by claims management firms, lawyers, insurers, and brokers. It enabled them to be able to exchange information amongst each other, regarding individuals that had been involved in accidents.
Another stipulation that was introduced was for anyone who was utilising a no-win no-fee attorney. Individuals that now decide to utilise these individuals will be responsible for paying for their solicitors success fees, from the funds that they win, if they win their case. Before, the losing party, was responsible for paying the fees for the opposing party. This is something that has made claims more expensive to attempt to get.
Gender equality laws have also been introduced. This has enabled premiums for men to be decreased. While, premiums for women remain roughly around the same amount, the amount of fraudulent claims that are slipping through the cracks, are also being put to halt. This is especially true, for individuals that complain about suffering from whiplash.
Simon Douglas, who is an insurance director with AA, stated, that previously, insurers ha a widening gap that they were having to deal with when it came from the income they were receiving from premiums and the costs they were paying out for claims. This was due largely from, falsified whiplash claims, being granted. This caused an increase in coverage costs, from 2009, thru 2011.
Back to motor trader insurance news