Young drivers insurance news
06/04/2009
Cheap car cover threatened by uninsured motorists
An increasing number of uninsured drivers are threatening the profits of insurers with the cost of cheap car insurance likely to rise as a result.
One of the most recent studies shows there has been a four per cent increase in drivers' insurance, young and old, deciding to get behind the wheel without cover, compared to similar measures last year.
Motorists who drive without insurance cost the industry more than an estimated £500 million - and that's based on figures for the year 2007.
Insurers blame the trend on the recession with many people trying to reduce expenditure wherever they can.
Fraudulent car insurance claims are also predicted to grow. Insurers are familiar with many customers trying to generate extra money by inflating vehicle claims.
To combat the threat, the industry is investing in anti-fraud measures. Allianz is expanding anti-fraud operations while Zenith Insurance has just created an in-house team.
Hopefully, the steps taken will keep claims costs down to more honest levels with cheap car insurance quotes for young drivers - and premiums - kept as low as possible as a result.
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