Car Insurance News Articles

Motor insurers have demanded a crackdown on bogus claims for whiplash injuries. It follows the publication of a series of statistics that bring into question the legitimacy of many claims.

According to the Association of British Insurers, one in every 140 people claims for a whiplash injury each year. That's 1,200 a day, a rate six time higher than that of people suffering injuries while at work.

The ABI also noted that three-quarters of personal injury claims now involve Full Story

Most drivers remain unaware that "fronting" on an insurance policy is illegal, according to a new survey.

Fronting means listing one person as the main driver of a car and then putting the person who actually uses the car the most as an additional named driver. It's most commonly associated with parents falsely listing themselves as a main driver to allow a teenage child (usually a son) to be covered by the policy without paying the huge premiums they would normally Full Story

Car insurance premiums have risen by what's thought to be the fastest rate in history. The AA says that in the past 12 months, average rates across the industry have gone up by 40%.

The average comprehensive policy is now £892, while the average third party, fire and theft policy is now £1,533. That might seem illogical, but it's explained by the fact that the latter policy is more Full Story

An amateur footballer has been jailed for a year after attempting to scam an insurer out of more than a million pounds.

James Shikell was involved in a car accident in 2002 and later received a £30,000 payout from the Motor Insurers' Bureau's compensation scheme that covers cases such as this, where the at-fault driver is uninsured.

However, Shikell claimed that his injuries were so severe that Full Story

A scheme that launched this week could mean significant insurance premium reductions for young drivers prepared to have their driving activity monitored.

The scheme, offered by Co-operative Insurance, involves a small "Smartbox" device being attached to the car, usually under the bonnet or dashboard, with the device transmitting data back to the insurer.

Premiums would then vary Full Story

New rule changes mean drivers will need to shop around for motor insurance renewals early or face an unappetising choice between a potentially overpriced premium and a hefty fine.

That's because of a new system named Continuous Insurance Enforcement that takes effect later this year. At the moment it's only a crime to drive an uninsured car. Under the new rules, it's an offense simply to own a car that isn't insured. The days of leaving a vehicle in the Full Story

Female drivers could pay higher prices for insurance if an expected European ruling bans price discrimination. But young men could be big winners.

The ruling, due on 1 March, will come from the European Court of Justice. It looks set to uphold a policy that insurers cannot discriminate on grounds of gender alone. That means that a man and woman who otherwise had identical risk factors would have to be offered the same price. If the rules are changed, its though insurers would have to Full Story

A Leeds man who was promised a car for his 18th birthday has been disappointed after being quoted £5,700 for a year's insurance.

The BBC reports that David Cockayne had promised to buy son James a Vauxhall Corsa to celebrate both turning 18 and passing his test. But he says he has tried comparison sites, direct retailers and independent brokers, and failed to get below the £5,700 cost -- and that's just for third-party cover.

A spokesman for the British Full Story

The average motor insurance policy now costs £845, a figure that is up £215 on this time last year.

The AA reports that the 34% rise, the biggest proportional increase in 17 years, has mainly been driven by personal injury claims. The Daily Telegraph says the number of claims for whiplash has gone up 25% over the past six years, even though the number of reported injuries of that type has Full Story

Seven motor insurers have been forced to restrict a data-sharing scheme that had led to concerns about price fixing.

The Office of Fair Trading ordered the crackdown on "WhatIf? Private Motor", a service offered by Experian that included details of the quotes that companies had offered brokers.

As the brokers would then use these quotes to set future prices, the system meant the Full Story