Young people's car accidents blamed for insurance rises
Car accidents caused by young drivers have been blamed for an increase in insurance rates, according to the AA's British Insurance Premium Index.
The director of AA Insurance said that he was heartened by figures showing that the number of fatalities and personal injuries suffered in road traffic accidents was falling, but said that, despite a rise, premiums were still at a level where insurers were making a loss. Some insurers were choosing to withdraw from the young driver third-party fire and theft market as a result of this.
"The average car accident insurance claim for a young male driver is nearly £4,500 compared with £2,700 for their female peers," he said. "For drivers aged over 30, the average claim is £1,400 for men and £1,200 for women. The withdrawal of another insurer from this arena suggests that companies are carefully looking at their costs."
He also mentioned that "Insurers are particularly concerned about increasing legal costs and personal injury claims which last year rose by 22 per cent."
Some voices in the compensation claims industry fear that an increase in the difficulty and expense of finding insurance may lead to an increase in uninsured drivers on the road, which can cause further complications in personal injury claims resulting from a car accident.
*A replacement vehicle can usually be supplied within 4-6 working hours, where there is an admission of liability from the other person’s insurance company. If this person is not known, their insurance details are not known, they are uninsured or there is a potential dispute over who caused the accident, a replacement vehicle cannot be provided.
