The Financial Times recently revealed that car insurance companies have lost £2 billion in 2010 thanks to the amount of personal injury claims rising. Some new customers taking out car insurance have had to pay 30% more for their insurance this year than last.
In recent years the car insurance industry has been hit hard with claims for bodily injury soaring to new heights. The Royal Bank of Scotland alone has to put in reserves of around £390 million in their insurance business solely due to the amount of individuals making claims for injury in road traffic accidents. In the worst case scenario, companies lost as much as 4p in every £1 of premiums they took in. According to the AA the average premiums have risen by more than 30% since 2010.