Car insurance – we all know it is a vital part of being a car owner, but do consumers get a fair deal when it comes to insuring their vehicle?
In recent years, insurance companies have come under attack for unfair practises, including raising the price of premiums after people have declared minor incidents which were not their fault and for which they weren’t looking to claim.
The Mail on Sunday recently included a piece in their Personal Finance pages, giving a real life example as below:
In late November 2014, a 21 year old art student, Sally Smith parked her Vauxhall Corsa in a quiet residential area so she could attend a hospital appointment. When she returned to her car, she found that it had been hit and slight damage had been caused to the wheel arch.
Believing she was doing the right thing, Sally duly contacted her insurers Diamond, with details of the culprit’s registration, which a witness had managed to take down when the other person left the scene. She also informed the police of the incident and visited a garage to assess her vehicle, before deciding not to claim as the damage was only superficial and cosmetic.
When her insurance renewal quote came through from Diamond, you can imagine Sally’s frustration and anger when she discovered that her premium had soared by nearly a third to £496.
Her insurers Diamond, who are part of the Admiral group of insurance companies, admitted the ‘no-fault’ incident she had reported, but not claimed for, had contributed to her increased premiums.
To add further insult, when shopping around for other quotes, Sally found that they were also ‘loading’ their quotes because the incident had been logged onto a central database used by insurers to assess the risk of individual drivers.
Drivers are encouraged to report ‘no-fault’ incidents, even ones which are very minor, causing little damage, but it seems that insurance companies are unfairly penalising honest drivers. And will such penalties and rises in premiums push some drivers to risk driving with no insurance at all?
At Freeclaim Solicitors we are outraged that honest and careful drivers are experiencing price hikes for very minor, non fault incidents.
There is also a concern that because of the rising cost of insurance and ongoing price increases in the industry, more drivers are taking reckless risks and driving without insurance. We frequently handle cases where uninsured drivers cause accidents, resulting in injury to another driver, cyclist or pedestrian. These claims are often called “MIB” claims because they are processed by the “MIB” or Motor Insurer’s Bureau. The MIB was created to help compensate victims of accidents involving uninsured or untraced drivers.
If you’ve suffered injury after a road accident, whether you are a pedestrian, cyclist, car passenger or other road user, we have a specialist team who can help you claim compensation. We can also help claim compensation where the driver is untraced or uninsured.
Call free 24 hours a day to speak to one of our road accident solicitors on or contact us online.