Car insurance industry leaders met with Prime Minister David Cameron to discuss the problem of rising insurance premiums. Insurance providers have been asked to help stop the rising cost of car insurance in the UK. The car insurance industry has blamed the rising costs on the ever mounting claims of whiplash and false claims. There are a possible 1,500 whiplash claims filed every day to car insurance providers.
Data released by the Association of British Insurers revealed the cost to the insurance industry is £2 billion annually and this is adding £90 to the average car insurance premium of UK drivers.
Simon Douglas, director of AA Insurance remarked “I believe that the insurance industry is committed to keeping premiums as competitive as possible: but as the gap between premium income and claims payments has widened because of soaring fraud and personal injury claim costs, premiums have had to rise for everyone.”
Experts suggest that the driver take the cost of car insurance into their own hands and consider black box car insurance. Black box car insurance uses a GPS unit to collect data on the driver while on the road. This data is then used to determine the cost of car insurance. By being a safe driver then the costs are reduced. Young drivers can especially benefit from this and save a considerable amount of money.
Switching to black box car insurance can help drivers save money now rather than waiting until changes are made in the car insurance industry.