Bike insurance premiums on the rise
Motorcycle premiums have risen by nearly 10% in the last six months and are matching a trend which has pushed car premiums higher than ever before, according to AA Insurance.
The AA’s Insurance Premium Index reported that car premiums have risen by 8% in the last 12 months and more than doubled since 1994.
AA Insurance spokesman Ian Crowder, said: “Motorcycle premiums had risen by 9% in the same period.”
“This suggests that motorcycle premiums are mirroring car premiums.”
According to Crowder, premiums are being pushed up by a combination of uninsured drivers and an increase in the cost of personal injury claims, driven by the growth of compensation culture.
Victims of uninsured drivers claim compensation for injuries from the Motor Insurers’ Bureau (MIB). The MIB is funded by Insurance companies who in turn pass the cost on to policy holders through premiums. According to the MIB the total cost on uninsured motoring in the UK now exceeds half a billion pounds a year.
Ashton Weston, group chief executive officer for the MIB, said: “The cost of uninsured claims has risen in line with personal injury inflation and we have one of the highest cost levels in Europe.”
The Association of British Insurers has called for radical new penalties to deter uninsured drivers and riders.
Get MCN on August 8 to find out what they are.