The car insurance companies are at it again warning about impending hikes in our premiums. Well according to figures we’ve seen, premiums have already gone up! Between April and June this year premiums rose by an average of 3.5% to £778.13. And over the last year premiums rose by 11%. On fact premiums are rising faster now than at any time in the previous ten years.

The insurers are blaming several things. Apparently the number of drivers without insurance has risen to 1.6 million and it’s the accidents these drivers cause that’s costing us, the drivers who do have insurance, an average of £30 per policy.

And the cost of an accident is rising. Repair costs are rising, as are fraudulent claims. But the factor having the biggest affect on premiums seems to be those No Win No Fee accident compensation claims. Personal injury compensation and the legal costs that accompany them are siphoning money out of the insurers.

The biggest burden of these increased premiums is inevitably falling on the under 21 year old drivers. That’s not perhaps surprising as they account for ten times more accidents than drivers aged over 35. And only about half of insurers will even quote an under 21 year old!

And there is some streamlining afoot to speed up the systems to catch and fine those who drive without insurance. Powers are expected to come into effect in 2011 will slap £100 fixed penalty fines not just for driving an uninsured car – but for simply keeping an uninsured car! Now whilst it still seems a cheaper option to accept a fine rather than buying insurance, there is another sanction that has some real teeth. If they don’t produce insurance within 14 days, their car will be crushed.

This means that the police don’t need to catch uninsured drivers on the road. A new system will cross match the Motor Insurance Bureau’s data base of uninsured cars with the Driver Vehicle Licensing Agency to find out who owns them. Then, hey bingo, they’ll see a £100 fine in the post and a car crusher on the horizon.

That sounds good to me!