How Does The Cost Of UK Car Insurance Compare, In Real Terms, To 20 Years Ago?
The cost of car insurance in the UK, including short term cover, has been climbing recently at an astounding rate despite the efforts of websites like  It has been going up by nearly thirty percent, a trend that has only just begun to ebb. This has actually caused a lot of problems for many drivers, especially those who are young and do not yet have high-paying jobs, since they need vehicles for school and work but they cannot afford to drive them. The prices today are drastically higher than they were twenty years ago. There are a number of reasons for the changes in price and for the way that the increase is finally starting to taper off, which will be explored in full below.

Insurance Fraud

One thing that has been driving the cost up is a recent rash of insurance fraud. People seem to be staging accidents in some cases and then collecting for the damages. In other cases, crooked repair ships are charging the insurance providers for damages that never happened. They are then pocketing the money. The same thing is happening at some crooked clinics, where even people who just have short term car insurance are charging the insurance companies for injuries that they did not sustain. They are then taking all of this money, which drives the rates up for everyone else.

Short Term Car Insurance

One way that people have been trying to save money is by taking out short term car insurance plans when they really need to drive. They try to go as long as they can between plans so that they are not paying money the entire time. While this can work to some extent, it is important to note that the rates for these short term deals are still much higher than they would have been twenty years ago. You can get a quote here.

Crashes By Uninsured Drivers

Another thing that has been pushing the rates up is that there have been a lot of crashes by drivers who did not have insurance. While it is illegal to drive without a coverage plan, people have been doing it because they cannot afford the high costs. This is a vicious cycle. As the costs go up, more and more people cannot afford them. This leads to more crashes by people who do not have insurance any longer, something that just drives the prices up even more.

Coverage On Parked Cars

One thing that has helped with the decline of the increase in rates is that a new law has just been passed that states that all people have to have coverage on their vehicles even if they are not driving them. This means that it is now illegal to have a car sitting in your driveway or in your garage without the proper coverage. This has forced people who were taking a chance and driving without insurance to go in and get a policy. Since there are now more people who are paying the insurance companies, they do not have to charge each person as much to make ends meet.

Copyright 2008