If you are a motorist you will not need to be told about the rising cost of motor insurance over the last few years, with prices having risen considerably of late. The insurance companies put this down to an increase in the number of claims being made, with whiplash leading the figures. All this is in despite of constantly improving safety standards in cars and on the roads so if anything, the number of claims being made should be coming down. One reason for the high number of claims is the cash for claims fiasco which is actually encouraging motorists to make more claims, while at the same the insurance providers are cashing in. That whiplash is leading the number of claims, and by some margin, suggests that many of the claims being made are relatively trivial. The reality is that many people are being coerced into making claims by both the lawyers and insurance companies so they can make a profit from cash for claims.
Filling Their Coffers
While the insurance companies are increasing the cost of insurance on the back of the rising number in claims, they are cashing in on the payments they are receiving for selling the customer’s claims. Although the insurance companies are receiving cash for claims that belong to their customers, they are passing none of this back to their customer base and are instead increasing the insurance premiums they have to pay.
As the lawyers have paid cash for claims, it is in their best interests to encourage a claim and do so at every opportunity. This has led to an increased number of claims being made, and awarded, which in turn has led to many customers having to pay higher premiums for their insurance policy, regardless of whether they have made a claim or not. As long as the insurance companies will continue to receive cash for claims, the longer the cycle will continue and motor insurance premiums will continue to rise. With an economy that means many people are already struggling to make ends meet, more and more people are going to be priced out of motor insurance thanks to the greed of insurance companies and claim lawyers.
If you do need to make a claim, you could take advantage of the cash for claims fiasco by getting some cash back yourself when your claim is sold.