Godfather of Soul James Brown once sang, “Stock market going up, jobs going down,” and he’s never been more right. Only it’s not the stock market going up, its car insurance in the UK. And it’s going up a lot. Twelve months ago, drivers were paying (on average) £633.55 to insure their cars. Now they’re £892.08 or forty percent more, and there was a similar 40% increase the year before and the year before that. Yet with accidents declining and the competition increasing more than ever before, premiums – you’d think – would be lower than ever.
So what gives? Well, insurance companies are making bigger payouts thanks to litigation. Litigation! Roughly 200 claims a year to be exact, executed by those nefarious, “no win, no fee” lawyer-types. And this is in the UK; a country that I’d have thought would have more sense than that. Fortunately, it seems some people in the UK do have more sense than that as British Parliament has finally woken up to this litigation bully.