The lowdown on car insurance costs in the UK
Have you ever wondered why car insurance is so expensive in the UK? Have a look at these figures and comments published by the Director of General Insurance at end of 2006.
If we take an average insurance premuim which is currently around £400, then £70 goes to the government, £30 goes towards the cost of drivers making fraudulent claims and another £30 goes towards the estimated 1 in 20 drivers who are not insured at all. OMG, that means the average driver is paying £130 a year in stealth taxes to the government and for uninsured drivers/fraudulent claims! Add into the equation the massive profits made by insurance companies then it becomes clear why insurance costs are so high.
The law is changing regarding car insurance however, by making it illegal to own a car without insurance whether its declared off road or not. In addition roadside scans can now detect uninsured drivers by referencing a central database compiled from all insurers. So this may reduce costs in near future (assuming car insurance companies pass the savings on to consumers!).
An area where many feel aggrieved is young driver or teenager car insurance. Many young people are faced with insurance premuims in excess of cars value, especially when it comes to high performance cars or Grey import car insurance. Hopefully this may be changing also, there are plans to introduce longer and better training for young drivers and also to limit the number of passengers they can carry and driving at night. This will reduce the number of young people killed and injured in car accidents every day and will therefore lower the risk for insurers potentially bringing the cost of premiums down -again assuming the savings are passed on!
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