If you have never had an accident then you may be irritated to find that the cost of car insurance still goes up. The price of your car insurance is affected by your personal profile and claims history, but there are other factors over which you have no control. One of the main reasons that car insurance costs are increasing is that people are now increasingly likely to claim compensation for personal injury. The number of claims and the compensation payouts are higher than ever before, and all of us pay the price through higher premiums. Of course if you are unfortunate enough to be injured by another driver, the compensation you receive may be essential, especially if you are unable to work. Therefore this is one cost that it is really in all of our interests to accept. You may be surprised to learn that the NHS can also claim back the costs of medical treatment from the insurance companies. This would include accident and emergency treatment as well as any ambulance costs. A very frustrating factor which pushes up your premium is the large number of uninsured drivers on the roads. If one of these drivers damages your car in an accident, your insurer will have to pay and will not be able to claim back the expenses. It is believed around one in twenty drivers do not have insurance, with even larger numbers occasionally having uninsured periods of a few days from time to time if they are between policies. Remember that you are legally obliged to have at least third party insurance if you are driving in the UK, so do not get caught out. Perversely, those who do not insure are probably even less likely do so as the cost of car insurance increases. It is estimated that we all pay around thirty pounds extra on our premiums to make up for their lack of cover. In the current financial climate it will come as no surprise that another factor in the cost of your car insurance is the overall performance of the stock market. If there is a very bad winter for example, you could expect more accidents and more claims, so the insurance companies have to ensure the funds are available. Insurance companies invest in the stock market until it is needed to make a payout. Let's hope that the current financial crisis does not lead to higher car insurance premiums for you and me.
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One of the main reasons that car insurance costs are increasing is that people are now increasingly likely to claim compensation for personal injury. The number of claims and the compensation payouts are higher than ever before, and all of us pay the price through higher premiums.
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