Honest Motorists Face Increasing Car Insurance Costs

The rising cost of motor insurance is partly due to the increase in claims which, after investigation, have been found to be fraudulent according to the Association of British Insurers, costing the industry 260 million pounds last year.

The stories concocted by motorists in order to peruse a claim from their insurance varied immensely, with some people deliberately pushing their cars off of cliffs and then claiming that their vehicle had been stolen, to the damn right outrageous claims that expensive luxury car parts had been stolen when they were later found to be inside the person's house.

Whilst these claims may appear amusing when first read the smile soon disappears when you realise that these claims are costing honest motorists an average of forty pounds on their car insurance. Combine this with an additional average of thirty pounds per premium to pay for those who simply do not have insurance and the cost increases are no longer funny.

In order to help stop the fraudulent claims insurance companies are looking carefully at every claim before making any payouts. Those who are caught will find that they may end up with a criminal record, which will not only increase the cost of any further insurance they try and obtain but also leave them with a poor credit rating.

Those who are caught with no insurance at all also face driving bans and points on their license, which will also increase any future premium costs, as well as finding it difficult to even purchase insurance as many insurance companies are becoming very choosy as to who they do business with.

Another increasing aspect of making false and fraudulent claims is 'crash of cash', where innocent motorists find they have been involved in crashes which are deliberately caused in order for the unscrupulous to make claims, not only for their vehicle but also personal injury claims which is also costing the insurance industry millions of pounds every year.

Add the cost of these three aspects alone together and it appears little wonder that insurance is at its highest for over a decade. However annoying and unfair the cost of paying for the dishonesty of others may seem it is not all doom and gloom for those wishing to buy insurance for their car.

Many insurance companies are offering huge discounts to those who keep a clean sheet with regards to motoring. Currently discounts of up to 75% can be found if you shop around online and meet the qualifying criteria set by the insurers.

Protecting your no claims discount may cost you more; however it is a good way of ensuring that you are able to make claims without affecting your future insurance premiums. The number of claims you are able to make without affecting your premium does vary between insurance companies along with restrictions, terms and conditions. Therefore it is worth making enquires and weighing up the cost difference before opting for this type of cover.

Should you need to make a legitimate car insurance claim follow the procedures set down in your policy to help speed up the process to get you back on the road as soon as possible.