A frugal life is an easy life!

Once again, another report/study into the money lavished industry of car insurance has revealed that customers are being exploited and lied to, by the companies that are supposedly there to protect them!

A report from the Transport Select Committee (Read the news story about it here) found that car insurance companies are receiving "Paid referral" fees, when the accident victim's details are passed to solicitors and the victim makes a compensation claim.

The Association of British Insurers (ABI) disagrees, blaming the "Compensation culture" for pushing up the price of people's premiums and legal costs.

"The [select] committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever-increasing personal claims and spiralling legal costs," said Nick Starling from the Association of British Insurers (ABI).

The ABI said the rise in legal costs had added £40 a year to average motor premiums.

A crazy idea... Does the ABI not realise, that if its members (the insurance companies) didn't sell on customer details when they have had an accident and receive referral fees for doing so, there would be far fewer claims for compensation, hence lower premiums for everyone?

As for the claims by the ABI that rises in legal costs have added £40 a year to average premiums, utter rubbish!
They maybe able to explain £40 of increases in my premiums, now ABI, try explaining away the other £400 INCREASE that I had to pay for 2010/2011?

I've been told various excuses for over charging;

• "We've just had a record bad winter!"
• "We have had a lot more claims over the past few months"
• "Every insurance company is doing the same as us"
• "You don't have anymore no claims bonus to take into account"

All of course, are complete tripe!
No mention of the disappearing aspects of my "fully comprehensive" policy - like no longer being able to drive any other vehicle, courtesy car, etc.
Add to this, an increase in the excess from £150 to £250, a major part of my policy for which 28 days notice in writing should be given, by law!

The motor insurance industry are awash with profits from the pockets of their customers.
The passing on of customer's details after they have been involved in accidents, to compensation companies is a disgraceful act. Could it be in breach of the Data Protection Act?

Factor in that motor insurance companies do not check any claims for less than £1000, regardless if fraud is taking place, as most insurance companies have private agreements in place with each other (competition commission should be investigating this) and there is a growing case for official intervention and regulation of the insurance industry.

Those in power are supposed to be looking out for the public's interests.
Regulation is failing and it's us, the ordinary people who are facing continuously higher premiums (for a legal requirement) as the insurance industry make up and fantasise about what is causing the increases.

Something has got to give.... and soon!