Rising injury costs makes car insurance essential

Posted :17-02-2006

Accidents on UK roads may be in decline, but the cost of injuries has continued to rise, underlining the financial if not the legal obligation of adequate car insurance.

The cost of claims rose by 1.2 per cent in 2004, even though the actual number of claims fell by 0.4 per cent, as the Department for Transport's campaign to reduce road accidents saw a drop in the number of such accidents from 234,000 in 2000 to 207,000 in 2004.

However, a 31 per cent increase in the average cost of a personal injury claim between 2001 and 2004 to £4,814, has meant that the cost of accidents has also continued to rise.

The cost of paying defendants legal expenses in road traffic accidents where the value of the claim exceeds £10,000 grew strongly, as average damage awards increased.

In addition, the continued rise in the cost of spare parts, windscreens and garage rates all combine to make it more expensive to settle motor claims.

However, while victims of an accident involving an uninsured driver would be compensated by the Motor Insurance Bureau, the uninsured driver may still be held liable for whatever sum it is decided they can afford to pay.

As a result, motorists are urged most strongly to take out adequate car insurance or face not only prosecution, but a considerable bill if they are considered liable.


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