Released on: October 22, 2009, 3:49 am
Author: uSwitch.com
Industry: Automotive

•As the insurance industry shoulders a GBP1.9 billion fraudulent claim bill and investigators report a 44% increase in fake motor insurance claims, car insurance stealth charges are also on the up

•Compulsory excess payments have been increased by 32% in the last year from GBP129
to GBP170 - 85% of drivers would pay this charge in the event of an accident

•Drivers with a compulsory excess above GBP500 has increased almost tenfold from just 0.3% to 2.7% - 1.55% of these could pay between GBP1,000 to GBP3,000 to claim

•With over 4.4 million accidents resulting in a claim each year, this GBP41excess increase will make the insurance industry GBP154 million more in the next 12 months

•The number of drivers with a compulsory excess on their policy has jumped by 4% from 81% and currently impacts 21.5 million drivers

•On top of this, the average policy price has increased by 10% from GBP478.70 to GBP526.42 for fully comprehensive cover and almost 13% for third party

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