Young drivers car insurance news
25/01/2010
Insurance companies blame claims
So-called "ambulance chasing" no-win, no-fee firms are to blame for projected rises in the cost of young drivers car insurance in 2010, according to price comparison website Confused.
Their denouncement of these firms comes just days after major insurance company Zurich announced it was raising the cost of premiums for all kinds of motor cover, including young drivers car insurance", by 20% in order to meet the rising cost of injury litigation payouts.
Confused said that "a new breed of litigation-savvy motorists" provoked by "Ambulance-chasing injury lawyer adverts" were the reason for an increasingly unprofitable insurance market.
Insurance industry figures reveal that the motor cover market is becoming less lucrative, with young drivers car insurance claims one of the major factors behind an unprofitable reality that sees insurers paying out £105 for every £100 they receive in premiums.
Experts say that this tightening of purse strings makes it all the more important that younger motorists shop around for the cheap quote that best suits their needs.
"There are still savings to be made for young drivers," said a spokesperson from Hoot. "Particularly if they find a provider or broker who really understands and represents the needs of the younger motorist."
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