Car Insurance Claims

Both the frequency and cost of accidents was below expectations in 2003, without taking personal injury into consideration. There are several factors for this: better weather conditions, higher specification cars, improved driving calming schemes, greater awareness of the consequences of breaking the law are all suggested.

All these things can easily be reversed, and we could soon be seeing worse conditions again. A quick storm this autumn, winter snowstorms and the market are back to square one. A change of government might mean fewer speeding cameras and speed bumps. The Conservatives are talking about raising speed limits. All these things will have an effect.

Fraud is another issue, which has been under control thanks largely to insurance led efforts. However there is still some way to go. Criminals and fraudsters still add £30 to each car insurance policy.

In 2005 we will see the piloting of an industry wide database to allow cross-referencing of all claims. This will have a big effect on fraudulent claims.

Personal injury claims are still a worry; claims inflation in this area is still running at between 3 & 4% per year.