Crash claims against drivers without insurance soars 10%

COMPENSATION claims against uninsured drivers have risen for the first time in more than a decade.

The increase fuels fears that spiralling premiums may be deterring motorists from taking out insurance.

The Motor Insurance Bureau (MIB), which compensates victims of uninsured drivers and hit-and-run accidents, said the number of cases it handled rose almost 10 per cent to 11,000 in the year to July.

This number had been declining since 25,000 cases were recorded in 2004.

The MIB expects to pay out £256million this year in fees it collects from insurers – equivalent to around £15 added to the cost of the average policy. Seizures of uninsured vehicles are also on the increase, with 145,000 taken off the road in 2016.

MIB chief executive Ashton West said: ‘Increasing insurance costs may be tempting people to take the risk of driving without insurance.’ Premiums have risen to record levels, with the average cost jumping by 11 per cent to £484 over the last year, while younger drivers pay almost £1,000 a year. This is partly driven by Insurance Premium Tax doubling to 12 per cent in two years.

Another potential cause of the rise could be personal injury claims firms, which encourage crash victims to seek compensation.