Driver’s debt problems force premiums up

Steve Shaw — Thu, 30 Jul 2009 09:36:11 +0000

The cost of running a vehicle looks set to increase after the debt problems of many drivers has forced them to hold back on renewing their policies – pushing the cost up for everyone else.

The recession has forced many debt problems over the edge, and as a result more drivers are failing to renew their motor insurance, in a bid to try and reduce costs.

According to research by AA insurance, approximately 1.6 million people are driving without insurance, which has led to an average preimum increase of ¬¨¬£30 per policy.

For those with insurance, the number of bogus or inflated claims being made has also risen dramtically during the recession. AA Insurance suspect this is caused by car owners struggling with their finances who are trying to find an injection of cash.

All of the deceit from drivers only adds to any existing debt problems of the legal and honest drivers, as they foot the bill for the uninsured and dishonest. Over the past twelve months, the average premiums have increased by 11 per cent.

Simon Douglas, of AA Insurance, said: “Although the number of accidents on Britain’s roads is thankfully falling, the cost of claims continues to rise – particularly personal injury claims and legal expenses.

“During the current downturn, fraudulent claims are also putting pressure on premiums and I’m concerned this is leading to an increase in the number of people who drive without insurance.”

Ivan Cooper, Chairman of debt management company Chiltern, said: “People still rely on their cars to get to work, so rises in petrol and now insurance means that for households already struggling with debt problems the sitaution has just got worse.”

Driver’s debt problems force premiums up is a post from: TheDebtPeople.co.uk

TheDebtPeople.co.uk » Driver’s debt problems force premiums up

Driver’s debt problems force premiums up