Compensation culture blamed as car insurance costs soar
The cost of comprehensive motor insurance jumped by a record 18.7 per cent during the year, rising by 7.2 per cent in the final quarter alone to leave average premiums at just over 1,000, according to AA Insurance.
The group warned that premiums looked set to continue rising during the coming year as insurers struggled to cope with exhausted reserves and increases in claims costs.
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Hide AdIt blamed the situation on a sharp rise in personal injury claims, with people pursuing compensation even for minor injuries and being encouraged by personal injury lawyers whose costs, as well as compensation gained for clients, are met by insurers.