Driving is becoming even more expensive, which is unwelcomed news for anyone who drives. Nobody is happy about having to delve deeper into their pockets for insurance cover.

So what is behind the increase? The rising costs of legal fees, involved in settling personal injury claims is a main factor.  Legal fees add an average of 10% to all premiums paid by motorists. The ABI have long called for a simpler compensation process to make it easier for claimants to get the compensation they deserve, and less cutting down high legal costs.

People who commit insurance fraud are also contributing to this premium increase. Those who make dishonest claims are costing the insurance industry £2 billion every year. This adds an extra £44 a year to the average motor and home insurance premiums paid by UK householders. Insurers are making great efforts to minimise fraud in order to save honest customer’s money.

Tags: driving, Insurance, insurance - car, money