A recent study will be released within this week. According to the car insurance company that conducted the poll, around £ 1000 are being paid annually in accordance with motor insurance premiums.

A lot of motorists prefer getting a comprehensive insurance coverage because of its broader scope. However, as revealed in the survey, comprehensive insurance packages have increased by almost 16 % during the previous year alone. Because of this 15.3 % increase, comprehensive insurance coverage polices cost almost £ 1000 annually. This increase is the highest ever recorded increase since 1994. All figures and statements have been taken from AA Car Insurance’s British Insurance Premium Index.

The £ 971 figure has been based on the average of the three cheapest rates available on the market for a comprehensive coverage policy. Last week, the Transport Select Committee has stated that the most plausible cause for these increases is the rise in whiplash insurance claims in the country.

In addition to this, certain members of parliament have stated that it is hard to diagnose what exactly are the causes of continuous increases in car insurance premiums. However, the report also revealed that ‘askew practices’ like passing on customer details to other parties is another reason for insurance increases.

Late last year, the MP of Blackburn released scathing facts regarding the payment of personal injury lawyers for customer details. However, with the release of this information, a ban was also released to stop this perverse practice.

As stated in the recent survey, “Car insurance providers, solicitors and insurance claim management companies have all taken part in increasing the cost of car insurance premiums. This is because they have encouraged people caught up in car accidents to immediately make a claim despite the fact that they were just in small-scale accidents.”

“Motorists should not be forced into making legal actions by personal injury lawyers.”

According to the survey, whiplash claims must be given tougher criteria by the Government for approval. If this is done, reducing car insurance costs just might be taken into effect.

Nick Starling of the Association of British Insurers (ABI) said that, “The main reason for these increases in ca insurance costs are the rising personal injury claims. This is why referral fees of personal injury lawyers must be placed under a total ban. If referral payments are finally made illegal, motorists just might see a reduction in their car insurance costs.”

“Motorists are tired of getting numerous text messages, voice mails and calls from personal injury lawyers forcing them to take legal action. Also, they are fed up with enduring exorbitant car insurance premiums just because of these ambulance-chasers and claim management firms.”