It seems right now that every time you open up a newspaper there is a story about how motor insurance premiums are on the rise. Actual figures can be confusing with some reports mentioning a £1000 rise, or a 40% rise, and some saying that certain sectors like older drivers or younger drivers will be affected more.

Reading between the lines of all this confusing and conflicting information the only thing for certain is that premiums have indeed risen steadily over the past few years so to clear up any confusion we’ll discuss why this is.

Changes to the Ogden Rate Discount

One of the biggest shake-ups in insurance came into effect on March 20th 2017, when the government made changes to how much insurance companies would pay in compensation to people who suffer life-changing injuries. The rate was cut from 2.5% down to 0.75% which means that a claimant will get a much higher payout under the new rate. The effect of this is that the new regulation will cost the insurance industry many millions of pounds and these costs will pass to the motorist in the form of higher premiums.

The Rise in Uninsured Drivers

According to a 2016 report by the Motor Insurers Bureau there were approximately one million uninsured drivers on the road in the UK and that the MIB settles on average 25,000 claims per annum involving uninsured drivers. Many of these will involve serious injuries or fatalities. The cost of these claims falls to those motorists who are insured.

Fraudulent Claims

Recent scandals regarding the increase in false whiplash claims and so-called ‘cash-for-crash’ claims has meant that insurance premiums for all drivers rose by an average of £90 to reflect the increased cost to insurers – said to be around £2 billion per year. Too many drivers have also faked or exaggerated injuries and losses in order to secure a bigger compensation payout.

Having a Criminal Conviction

Whether you have a criminal conviction or a motoring conviction on your record you will find it harder to get car insurance at a fair price. Some insurers won’t even quote you at all. When this is the case you have to turn away from mainstream companies to find an insurer which specialises in criminal convictions car insurance in order to get insured and back onto the road as quickly as possible.