Is Britain Safe from Car Insurance Claims?

With average premiums on car insurance breaking through the £780 mark according to the AA British Insurance Premium Index, it’s surprising to discover that Britain has one of the lowest rates of deaths on roads in Europe. However, according to a new road behaviour survey from car insurance provider Swiftcover, 92 per cent of British drivers feel safe on roads compared to the European average of just 72 per cent.

The study included interviews with 800 drivers from nine countries including Belgium, Germany, Ireland, Italy, Luxembourg, Portugal, Spain, Switzerland and Great Britain. It revealed that one third of Europeans feel Brits are the continent’s best drivers and not only do Europeans consider British drivers to be the safest, but Brits themselves feel overwhelming confident in their own motoring abilities with three out of four describing themselves as good drivers.

The performance of British motorists isn’t just based on opinion however, as the facts back up the argument. Britain has one of the lowest deaths on the road ratios with 5.4 people per 10,000 being killed on its roads – placing it just above Switzerland which has the lowest total, and below Germany.

However, despite this pleasing record car insurance premiums continue to rise – so what is causing this contrast?

Why car insurance premiums rise despite a low death rate

There are a number of reasons why car insurance premiums continue to rise in the UK. One is the continuing global economic downturn, which makes the cost of repairs and replacement parts more expensive for insurers to cover. A second reason is high car crime rates with a recent survey revealing a surge in car crime in the UK’s villages. However, perhaps the most important reason is the performance of young drivers.

The three countries with the lowest fatality rate on their roads – Britain, Germany and Switzerland – ironically all have the highest death rate among 18- to 24-year-olds. The performance of the UK’s young drivers is particularly worrying with the Association of British Insurers reporting that 18-year-olds alone are involved in three times as many road accidents as drivers in their fifties.

The boy racer image of many young drivers can send premiums through the roof. The average car accident insurance claim for a young male driver is nearly £4,500 compared with £2,700 for females in the same age group and now drivers under the age of 25, account for a third of all car insurance claims.

It’s clear that young drivers are more prone to accidents and deaths than their counterparts and are punished heavily through their premiums. This drives up the average car insurance premium in the UK putting a bad spin on what is otherwise an impressive driving record.

How can you keep car insurance premiums low?

If car insurance premiums are to fall across the board then it will rely on young drivers in particular to take action. Though they can’t make up for inexperience, more responsible motoring is the key to keeping premiums down – this means avoiding reckless driving such as tailgating, speeding and driving without due care and attention. Similarly drunk driving is viewed as one of the most dangerous activities by British motorists according to 92 per cent of those surveyed – ensuring you never drive while under the influence of drugs or alcohol can go a long way to keeping your premiums down.

Of course it would be unfair to tar all young motorists with the same brush. Many are responsible and are unfairly paying for the actions of their peers. If that’s you, then take steps to prove you are a responsible driver. Many insurance companies offer rapid bonus no-claims discounts and Pass Plus discounts to young drivers, which could slash as much as 35 per cent off an annual premium.

To the remainder of motorists, the message is simple: take all the action you can to keep your car insurance premiums low. Again this includes driving responsibly and building up a no-claims discount. It can also be effective to install security devices to your vehicle such as immobilisers, car alarms and trackers to earn discounts. Most insurers will also slash around 10 per cent off your premium if you park in a garage overnight.

If you’re a mature motorist with years of driving under your belt and you still find your car insurance premiums are extensive then there’s no excuse to settle for what you’re given. Don’t accept renewal quotes rising year after year – instead take the opportunity to compare car insurance online and see if there is a cheaper deal available. This can be done quickly with a comparison website and most insurers offer their leading deals to new customers.