Why pre­mi­ums go on ris­ing

The Peterborough Evening Telegraph - - Your Views -

Like most mo­torists, I de­spair at the soar­ing cost of in­surance pre­mi­ums.

Re­cent in­ves­ti­ga­tions in the na­tional press tell us that in­sur­ers have saved hun­dreds of mil­lions of pounds since far­reach­ing re­forms to per­sonal in­jury claims were in­tro­duced three years ago, yet our pre­mi­ums have con­tin­ued to rise while the num­ber of claims has con­tin­ued to fall.

What­ever is re­spon­si­ble for pre­mium hikes, clearly it is not claims for in­juries.

There are many fac­tors which af­fect the cost of our pre­mi­ums, in­clud­ing in­sur­ers charg­ing each other over­in­flated rates for credit hire ve­hi­cles, and a hefty in­crease in the tax paid on poli­cies.

Ris­ing re­pair costs are adding to the prob­lem.

I un­der­stand some mod­ern head­lights, for ex­am­ple, cost more than £600 to re­place.

The Govern­ment now plans to have another go at tack­ling the cost of in­sur- ance by re­strict­ing the right to claim com­pen­sa­tion for some in­juries.

When you see where the costs are adding up, it is ob­vi­ous that the Govern­ment is set­ting its sights on the wrong tar­get.

The plans will, sup­pos­edly, save mo­torists £50 on each an­nual pol­icy.

This sounds fine un­til you are un­for­tu­nate enough to be in­jured be­cause another driver crashes into you.

That’s when you may need com­pen­sa­tion to get you back on track. That’s what in­surance is for. It hardly seems worth it does it? What is more, the ev­i­dence sug­gests we­have ab­so­lutely no rea­son to be­lieve in­sur­ers would even fol­lowup on their prom­ise. Han­nah Clarke East Anglia Co-or­di­na­tor for the As­so­ci­a­tion of Per­sonal In­jury Lawyers Ash­tons Le­gal

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