Why is Car Insurance going up in Manchester when accidents are down?


One of my biggest gripes with Car Insurance Premiums is that there is a lack of transparency in how they are calculated. There seems to be no relation between prices and accident levels.

Here is how the Manchester Evening News reported this issue last November.

http://menmedia.co.uk/manchestereveningnews/news/s/1465816_4000-to-insure-a-15-year-old-micra-in-chorlton-young-motorists-facing-horrendously-unfair-premiums-in-greater-manchester

A new study points out that Greater Manchester is one of the most expensive regions to insure a car. The average quote for one year's insurance is £1,648, over £600 more than the average cheapest quote across the whole country.

Young people are hit especially hard with men between 17 and 22 paying £2,792 whilst the average premium of women of the same age was £1,995.

Yet the number of car accidents has gone down. The problem is that more and more claims are being made for personal injury and with whiplash injury claims alone costing insurers £2bn last year, the cost is being passed on to customers.



However, a growing number of these claims are false with personal injury claims seen by some as a quick way to make money. With the North West being a hotspot for these claims people across the region, and more importantly in Manchester Withington, are having to pay more for their car insurance.

I have written previously on the need to tackle insurance fraud and want to again reiterate my support for the recently introduced Insurance Fraud Enforcement Department (IFED) and all the work they do in trying to reduce the cost of insurance in Manchester due to fraudulent claims.

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