CAR INSURANCE BLOG

• increasing cost of personal injury claims
• increasing numbers of uninsured drivers
• high levels of fronting whereby parent claims to be primary driver for under-25
• non-disclosure of previous driving offences
• non-disclosure of previous claims
• increasing accident-related fraud including cash for crash, staged accidents, phantom passengers, faked soft tissue injuires especially whiplash, and recycling of a written-off car
• price readjustment following years of non-profitable low prices to compete on price comparison sites
• referral fees including for legal services and credit car hire companies
• non-competitively-priced courtesy car hire leasing usually set up via a third party, typically a claims management company
• costly legal fees especially in complex claims, exacerbated by car insurance companies failing to accept liability during the three month protocol period when legal costs are fixed
• Drop in insurance company income from premium investment from 10-15% five years ago to 5% now
• Double recovery fees when police clear car from roadside followed by car collection by the car insurance company when the latter could have collected the car dircely from the roadside. Police usually collect a commission from the recover company that increases the cost
• Driving license points swapping where a driver is then deemed to be lower risk
• Lying to validate claims, for example, not disclosing that keys were left in a car that is stolen
• Including the curent, two harsh winters that led to a significant increase in claims owing to snow and ice. Poor road clearance and treatment by highway and local authorities in some areas contributed to this, a situation that led to the resignation of the Transport Minister in Scotland

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