Increased insurance claims pushing up premiums

Date: 31/07/2007 15:00

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The price of car insurance is being pushed up due to insurance companies having to foot the bill of extra costs, the AA has reported.

Extra costs such as ambulance fees, vehicle retrievals, and personal injury claims are some of the fundamentals helping to drive fees to an all time high this June.

New technology implemented in cars to protect the driver means that modern vehicles are designed to get more extensive damage in an accident than before, leading to higher repair costs, said an AA spokesperson.

Organisations that offer no win/no fee deals for personal injury claims are also helping to further push the costs of premiums.

And finally, 'uninsured driving continues to be a blight on Britain's roads,' said Ian Crowder, spokesperson for the AA.

Other extra costs that Mr Crowder highlighted, which insurance companies are increasingly having to take care of, was the charge from police forces of over £100 for keeping the car if it is recovered after being stolen.

Ambulances also charge drivers after they come to collect them when they have been injured after a car crash.

And an overnight stay at the hospital after being involved in an accident will also incur extra costs for the insurance company to pick up.

One positive, according to Mr Crowder, is that "the car insurance industry is extremely competitive so there are always deals to be had."

For great value deals on car insurance, check online or call InsureandGo.

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