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Car insurance claims of £20m after accidents 'not unusual'

By Tom Farley, Fri 20 Jan 2012 - Published in Car Insurance

Car insurance claims of £20 million for a single accident are "not unusual", according to a key industry figure at the Association of British Insurers (ABI).

The accidents, that usually involve young drivers, can invoke claims of £20 million the ABI director general told the House of Commons Transport Committee. The organisation said that as many as one in five young drivers have had an accident.

It also claimed that 18 young drivers or passengers die or have a serious accident on the UK roads each day.

Nick Starling, director of general insurance at the ABI, said: "This is a nettle which the government has failed to grasp. They see the young driver merely as a voter. Claims of up to £20 million have been made. It's not unusual to have three or four people injured in a car crash who will need care for life."

The AA recently revealed that car insurance premiums rose again in the final quarter of 2011 with the company's British Insurance Premium Index finding a 5.4 per cent increase over the last three months of 2011.