The price associated with covering a car has rapidly fallen since the new efforts went into effect.
In the United Kingdom, the cost of auto insurance is dropping rapidly following a fraud and claim management company crackdown that has been very effective in shrinking the problem.
According to recent data, the average annual comprehensive coverage quote has plummeted.
The AA, over the past year, there has been a reduction in the size of comprehensive auto insurance quotes by approximately 10 percent. This is the largest decrease that has been recorded by the organization since it began its index in 1994.
The average auto insurance policy saw a drop of 9.8 percent, which has brought considerable relief to drivers.
The data revealed that the average auto insurance policy is now sitting at £594.86 per year, which is notably lower than it was last year in July, when it was £659.53. This considerable decrease followed one of 6 percent that had been experienced the year before that.
Although drivers of all ages have been watching their auto insurance premiums slide downward over the last year, it is the younger drivers between the ages of 23 and 29 years old who are benefiting the most. Their premiums have dropped by approximately 12.8 percent. For that age group, the average annual premiums are currently £738.93.
At the same time, there was also a decrease in the figure for third party, theft, and fire coverage, which fell by 4.8 percent over the last year, bringing it to £820.58.
The director of AA Insurance, Simon Douglas, stated that “This will be welcome news for hard-pressed motorists facing sharp fuel price increases.” He added that “Insurers were facing a fast-widening gap between premium income and claims costs, largely driven by whiplash injury claims and fraud which saw very sharp premium increases between 2009 and 2011.”
Douglas explained that this gap is now shrinking and this is leading auto insurance premiums to reduce once more, as a result of competition and the improvements that have been made to fraud detection by the industry. Moreover, it was also supported by the tightening of a law that is starting to reduce the number of new false whiplash injury claims.