Car insurance increases for 80 percent of drivers, research says

Published: 06/05/2011 at 15:51:08
Posted by Sherri Sutton

Owners of nearly new cars may be paying more for their insurance this year than last because of rising fraud and criminal behaviour, according to a poll.

A What Car? magazine poll showed that over 80 percent of motorists are facing higher insurance policies, despite the growth of online comparison sites which should make it easier for motorists to find cheaper deals.

The poll revealed that one 25-year-old man's premium had risen 77 percent to £1,520 – more than his Skoda Fabia is worth.

And an 18-year-old girl has been asked to pay £4,250 to insure her Ford Fiesta, a hike of 52 percent over her premium last year.

"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," said What Car? magazine editor Jim Holder.

Mr Holder added that the punishment for driving without insurance doesn't fit the crime.

The AA revealed recently that premiums have increased by almost 40 percent in one year for some drivers, the highest rise since its index began in 1994.