Fraudsters are the main reason for car insurance premiums being so high and the reason that they are set to increase even more according to insurers.

A few days ago, the Transport Select Committee warned drivers that the average increase of 40% in the cost of buying fully comprehensive car insurance in the past year could well be repeated in the coming years which will leave motorists facing years of increasing premiums.

Insurers claim that they have had no choice but to increase premiums because of a huge increase in fraud, in particular a massive increase in personal injury costs. The insurers also point to the increased costs of having to deal with claims management companies as well as soaring costs to the insurance industry because of uninsured drivers.

Already some motorists are being priced out of the market. A lot of new drivers aged between 17 and 22 have seen a motor insurance quote increase of a huge 51% during the past 12 months according to the AA. These increases seem to be encouraging more drivers than ever to take the risk of driving with no insurance, this backs up why the insurance companies are increasing the premiums. A young driver will typically have an insurance premium of £2,000 to £3,000 a year, while the fine for being caught driving without insurance is a maximum of £1,000, it’s no surprise that so many are tempted to try to get away with it.

In actual fact, according to court figures, of those prosecuted many are given a fixed penalty of just £200. It does seem to be an open invitation to take that chance. Experts in the motor and insurance industries both favour a stricter approach when dealing with miscreants. Many would also prefer a more rigorous approach to the driving test, which they believe will prepare new drivers to deal with the everyday challenges that confront most motorists.

None of these measures will of course make any difference to the other type of fraud that is sending insurance costs soaring. Police forces and insurance companies are now convinced that many “accidents” are staged. Evidence is mounting that fraudsters are deliberately braking at roundabouts or at traffic lights causing cars behind them to drive into the rear of their vehicle. They know that basic motoring law will put the blame for the accident on the car behind leaving them free to not only claim damages for the vehicle, which is usually minimal, but also claim personal injury costs which, when the criminals usually have four people in the car is much more expensive.