A leading motoring expert has slammed car insurance providers for not helping drivers deal with expensive costs and potentially ripping them off when paying compensation.
The latest data from Confused.com shows that the average driver is paying a staggering £995 for their car insurance on an annual basis.
Based on data from the end of 2023, prices have risen by almost £340 in the space of 12 months, hammering drivers already dealing with the cost of living crisis.
Drivers in London face even larger charges with average costs of £1,607, compared to just £778 for those in south Wales.
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The average driver is paying almost £1,000 for cover
GETTYYoung drivers are facing the biggest financial headache with 17-year-olds expected to pay £2,877 and 18-year-olds being hit with average costs of £3,162 per year.
John Kushnick, Legal Operations Director at National Accident Helpline, lamented the expensive car insurance costs that drivers are forced to pay, pointing out that prices have risen by around a third.
Speaking to GB News, he said: "The huge disparity, in contrast to European counterparts such as France, where it has risen by only two per cent raises serious questions about the motor insurance industry in the UK.
"This is only further heightened by the fact that UK insurers have revealed the amount they paid for motor claims went up by about 18 per cent last year.
"Ultimately, it’s a case of UK car insurance payouts lagging far behind the rising cost of cover with the reason behind this - insurers’ greed."
The expert highlighted how the UK Supreme Court unanimously rejected a challenge from insurers that he said showed companies trying to avoid or justify reducing payouts by using calls of ‘fraud’ and ‘overcompensation’.
Data from the National Accident Helpline found that the number of injuries people sustained from car crashes since the pandemic has grown.
Despite this, claims are winding down, with more than one in 10 drivers worried about claiming and the entire legal system.
Kushnick added: "The ABI has attempted to blame a non-existent compensation culture, changing the laws drastically to make it harder to claim, all the while premiums keep on increasing.
"Indeed, in order to justify removing the right to recover legal fees for whiplash claims insurers promised to reduce premiums by a paltry £35, but even this failed to materialise.
"We need to guarantee that insurers are being held accountable, not only to tackle inflated premiums but to ensure that claimants who are entitled to compensation to rebuild their lives, can and will.”
Many drivers and experts have called on the Government to cut the rate of Insurance Premium Tax (IPT) which would deliver an immediate saving of around £67.
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Some drivers may not be getting suitable levels of compensation after an accident GETTYThe British Insurance Brokers’ Association suggested that the IPT rate could be cut from 12 per cent to 10 per cent in a bid to cut costs and support drivers.