Car Insurance Premiums Leading to UK Inflation
With the inflation sticking hard to the UK economy, it is advisable to compare car insurance quote online before buying a policy for your car. As per the Office for National Statistics (ONS), the Statistical Authority of UK, car insurance premiums increased by 6.3 per cent in the month of April this year. ONS states that this rise in car insurance premium has influenced the high inflation the country is facing currently. The drastic rise in car insurance premiums has been the highest compared to other monitored categories, leaving out petrol. This rise in car insurance premiums is seen as one of the major factors in rise in the rate of inflation from 0.1 per cent to 3.7 per cent.
Car insurance policies are becoming harder to attain as these are increasing at a rate of 26.1 per cent every year. Reports from the government reveal that for every personal injury claim that is valued under £10,000 will add another 76 pence with respect to every £1 paid by the insurer as compensation. Due to these extra costs, the insured will end up paying 10 per cent more of the insurance premium. Compare car insurance quote online for better comprehension on premium prices.
However, fortunately car insurance premiums have stayed reasonable stable for the last few years. This is because of the car insurance market being highly competitive in nature. Car insurance companies are under more pressure due to a rise in the injury claims in recent times.
The Department for Transport reported that there has been a decrease in the number of road accidents. This decrease should have led to lower car insurance premiums. But every year, about £5.2 million worth of fallacious claims have not let to the scenario of low auto insurance premiums. The fallacious claims, on the other hand, have led to an annual rise in the auto insurance premiums by £44. It is estimated that one motorist in every five submits a fraudulent claim giving rise to the car insurance premiums every year.
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