Insurance Companies Profit from Motor Accidents

Motor insurance companies have been accused of ‘profiteering’ when it comes to renewal of motor insurance premiums.  Across all polices for fatal car accident claims and non-fatal accident claims it has been reported that the number of accidents have reduced whilst the premiums have increased.

This is despite the fact that the solicitors costs have been drastically reduced when a claim has been made.  Further the costs that motor insurance companies have to payout have also drastically been reduced meaning that they pay less out overall in compensation to all victims who have been hurt, including fatal car accident claims.

Cost of Motor Accident Claims Increased by £110

Despite the reduction in motor accidents including fatal motor accident claims and the drastic cuts in legal costs insurers have to pay, the average insurance policy has gone up by £110.  Thus the average motor policy is now £781 of comprehensive cover.

It is said that the increase has been due to the Government rise in insurance premium tax and the alleged surge in whiplash injury claims.

One law firm (who acts for large motor insurance companies, Weightmans) is reported to the number of motor accidents including fatal car accident claims have reduced by 7 per cent over the past year.

The numbers are from 876,000 to 816,000. Compensation pay-outs have risen slightly from £2586 in 2015 to £2,673 in 2016 however.

A claimant law firm has stated that the figures show that the motor industry will increase insurance premiums ‘no matter what.’  The cost of insurance premiums bear no resemblance to the number of claims being made.

Posted: May 17, 2017 at 1:17 pm