The UK's leading comparison website, MoneySupermarket have recently reported a rise in car insurance premiums of around 40%. The average premium now costs in the region of 800. In this time of high unemployment and rising taxes, a rising car insurance premium is not something that should be reckoned with. What can be done about it?

Target them while they're young

Young drivers are often the target of rising car insurance costs. This is due to the fact that, according to brake.org.uk, young male drivers are 7 times more likely to get into an accident than their more experienced counterparts. The average price for young male drivers to pay for their car insurance premium would be 2000-3000 according to Which Magazine. It was reported by The Guardian that the UK government plan to up the tax on car insurance by 37 – a cost which a lot of young people cannot afford. If young people knew more about their car insurance groups they might be able to save this amount, but even so, it seems like the British government are trying to get young people off the road. This would drop insurance for everyone else, as there would potentially less accidents on British roads.

Punish those uninsured

Now, direct.gov.uk has admitted that all uninsured drivers cost insurance firms in the region of 380m a year – and there are potentially 2 million people in the UK driving with no insurance. The head of corporate affairs at The British Insurance Broker Association, Graeme Trudgil, says that the British government need to tackle this problem. He suggests that they increase the punishments dealt out. Either higher monetary fines, vehicles to be seized or points on a drivers license.

Lay all the blame on fraudsters

However, the Insurance Fraud Bureau believes that the main reason for the increasing cost of insurance is fraudulent claims, which they state is costing insurance firms 350 million each year. This cost is being passed onto every insurance premium and therefore costing each driver 44 per year at the moment. The 'crash for cash' phenomenon is a big part of this, where people fake an accident in the hope of being able to benefit from the insurance money. This can involve fraudsters purposely driving dangerously in the hope of forcing innocent drivers to crash into them.

The British police force are said to be studying road accidents all over the country for evidence of fraud. The government has already introduced punishment for those committing fraud. This ranges from prison sentences to 10,000 fines.

Round and round it goes

Yes, this might all result in a vicious circle. More and more people are driving without insurance. Due to money concerns, they fake an accident and make a fraudulent claim. These money concerns come from the high cost of their car insurance. Car insurance prices have been driven up by fraudulent claims. Car insurance firms are forced to cover the price of uninsured drivers. This may never end.

The best way to tackle this is not with a tax increase. If insurance is made even more unaffordable, more people will become uninsured. This problem can only get worse this way. A more straightforward solution would involve punishing fraudsters and uninsured drivers. This problem needs to be dealt with soon.

Comparison sites are full of useful guides for motorists, such as the Moneysupermarket guide to car insurance companies.