Thursday, 29 November 2012

Young Drivers Caught In A Vicious Circle Thanks To False Claims

Official figures released earlier this month suggest that there are fewer accidents on the road but there are more whiplash claims which have cost the insurance industry around £400 million.

Unfortunately it sounds like young drivers are in a vicious circle. Car insurance providers are claiming that premiums are on the rise due to the large number of claims - many of which are reportedly false!

So young drivers are automatically affected - many first time drivers pay a substantial cost for their first year's driving. Not only do they need to worry about the road tax, running and maintenance costs of the car but also how much their insurance is going to cost.

In spite of this, David Brown, chairman of the Institute and Faculty of Actuaries (IFA) has suggested that "the average cost of a UK motor insurance policy is decreasing."

However, he later added that whilst this is good news for the consumer, "it does raise the question of how sustainable this is for insurers."

So could we be looking at another spike in the cost of car insurance for young drivers in the future? Let's hope not!

Here at iKube we're always looking at ways we can make the cost of motor insurance fairer. We use a black box to help reduce costs - by using this data we can review your policy fairly at renewal and reward you according to how well and how safely you've driven.