Some Of The Reasons Why UK Car Insurance Rates Are High

Car InsuranceMotorists across the UK are fed up with the high premiums they are charged each year for their car insurance plans. Many simply do not understand why they need to pay so much for their coverage and they want to know ways of reducing the amount that they owe. With the economy doing poorly, jobs being scarce, and so many people finding it difficult these days to make ends meet, it is no surprise that drivers are becoming increasingly frustrated with all of the high premiums they have to deal with. And because car insurance is not something that you can typically negotiate, drivers have to just take the costs and figure out ways of dealing with them within their own financial limits.

Below are some of the reasons why UK drivers are faced with high car insurance premiums. You may have already been aware of some of these reasons, while others may come as a surprise. Read on to learn more.

Uninsured Drivers

For a long time, uninsured drivers, who were typically reckless while on the road and caused many accidents, were getting away with driving without a proper car insurance policy in place to cover them. But the UK police have since been cracking down on uninsured drivers, seizing their vehicles and making sure that they understand that they are breaking the law.

These uninsured drivers, over time, caused insurance premiums for those who were insured to continually go up. Therefore, the fact that the government is now setting stronger standards to stop people from driving without insurance will hopefully make a difference in car insurance rates and bring them back down a bit.

Fraudulent Activities

Fraud is yet another reason that car insurance premiums have gone up so high throughout the UK. Fraudsters can go so far as to deliberately get themselves into a car accident with other innocent drivers so that they can be compensated for the damages. Entire crime families, in fact, were creating fraudulent offices as medical experts and victims so that they could get the most money out of the system as possible. These fraudulent activities caused car insurance providers to take a big hit, and in order to recoup the losses and be better prepared to cover future damages, they began increasing their premiums.

The Car Insurance Industry Was Operating in the Red

Because of everything from uninsured drivers to fraudulent claims being filed–even by those who were legitimately in an accident yet who wanted to take advantage of the system by making injury claims that were not true–the car insurance industry began operating at a loss. No industry can continue on if it is financially in the red, and so premiums could not stay where they were. As a result, car insurance companies across the board began increasing the rates that they were charging drivers in the hopes that they would become better able to face all of the high costs associated with claims, from medical expenses to repair costs.

Mandy Hodgkinson is an expert on all things insurance related. Mandy frequently visits garethsquote.com to check out the latest tips and advice on car insurance. 

Jimmy Simond is a founder of Personalfinancetricks.com, he share his immense knowledge of finance in this blog.