Tuesday, July 17, 2012

Why is car insurance so high?

That's a question addressed by The Express today in which they suggest that fake claims add £50 to premiums. But despite the headlines, most people in the industry knows that the answer is far more complicated than that. Yes, I'm sure fraud does add to the cost of car insurance as does credit hire and also general personal injury claims. But on the other hand, you also have to remember that insurers have been at least to some extent shooting themselves in the foot by having lived off the profits of referral fees for so long. It will be very interesting to see whether the ban on referral fees which is to come into force next year will raise or lower the cost of premiums.

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