Insurance premiums on the increase

Bogus insurance claims increase by 10% in one year

A new report from the association of British Insurers (ABI) has revealed that fraudulent insurance claims increased by ten per cent from 2009 to 2010, increasing the cost to each policyholder by an average of £44.
False insurance claims on the increase?

One in nine people who exaggerate insurance claims have suggested their reasoning is because it is something everyone does.

Monday, 24 January 2011 05:15

Insurance premiums are on the up, which could spell bad news for motorists.

According to the AA's British Insurance Premium Index, over the last three months of 2010 care insurance premiums rose by 6.4 per cent, adding £51 to the price typically paid by drivers for their annual comprehensive car insurance policy.

Meawhile, for home insurance, the typical cost of a buildings policy also rose by £10 or 7.7 per cent over the quarter.

Simon Douglas, director of AA Insurance, stated there has been no let-up in premium increases as insurers struggled to cope with losses from 2009 "when for every £100 taken in premiums, £123 was being paid out in claims".

He added this has led to the biggest annual premium increases seen since the AA Index began in 1994.

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