UK Car insurance rates

Since last year car insurance rates in Britain went up an average of 40%. While last year the average car insurance was around £600 pounds, this year it is around £900 pounds.

According to BBC News some young drivers have been quoted up to £27,000 thousands pounds in annual car insurance.

WOW. I wonder why is this scam industry is able to operate in an advanced country like Britain>

They claim the rise due to fraud. Also to Personal injury claims and annually £500 million pounds because of uninsured drivers.

Now even without further investigating these figures we can see they are simply lies and irrealistic. £500 million due to uninsured drivers, c’ mon scamming insurance industry> Prove it by real numbers.

I am sure what they meant by that is that how much they are not getting from those people that don’t buy car insurance. Awwwww. That’s too bad. But that is not damage or loss due to accidents caused by those people!!

Let’s look at personal injury claims. Awww, that’s too bad too. as that is part of their insurance and if they are injured due to an accident, they should be paid by the insurance company, who sooo caringly offered it as an add on when they were contracting at the first place.

Ohhh it stinks to pay now that those people want the money they had paid for and contracted with the insurer?  Too bad.

Lets look at insurance fraud in the UK. Here is the story of a friend of mine. Got a flat tire and slipped into the farmer’s field, causing about a £400 pounds damage to his car. The insurance company approved repair center came up with an above £3,000 thousand pounds repair estimate. The insurance company settled with him for £2,200 pounds and wrote the car off as a total loss.

So where is the fraud? Certainly not the people are the ones committing the fraud, but the insurance companies themselves as they need to keep up their billion pounds advertising campaign on tv and radio and news media. Also to keep their highly paid executives and also to pay for those expensive office buildings they own or rent from their own companies they had acquired using those people’s money that buys car insurance.

So I am asking where is the fraud? If a small company, say a law firm was using their clients money as their own. Would they be prosecuted for fraud? I am sure they would. If an auto dealer was to use the customers deposit as their own. Would they be prosecuted? Would a building company be prosecuted? And the list can go on and on.

So than why is the insurance companies are allowed to do it? When are they going to be prosecuted?  I think the insurance companies should be regulated and prices set accordingly. If they can’t afford it than close the doors and find something else just like other business owners are doing. Simple! No?

On the other hand, in Hungary, that same young driver with the same car pays about £160 for the whole year and with the same insurance companies that insures drivers in the UK too.