According to the Automobile Association (the AA), average car insurance premiums have increased by over 30% in 2011 with insurance for 17-22 year olds increasing by 47% on average. The sharp increase in vehicle insurance premiums means that many drivers simply can't afford to drive or own a vehicle.
One key reason for insurance premium increases is the rise in 'cash for crash' fraudulent claims. Some drivers are now unlawfully benefiting from staging accidents or purposely causing accidents. These fraudulent drivers then benefit from insurance payouts, which in turn drive up the cost of insurance premiums for honest and law abiding citizens.
In light of this fraud there is now a new technology available to honest drivers, which are commonly known as in car camera systems. These small cameras are fitted to the windscreen of the vehicle and record the road ahead, inside the car or even out of the rear of the vehicle and provide the driver with vital evidence should they become involved in an accident. Some systems even record the vehicle speed, GPS location and G-forces of the vehicle with an accelerometer to display the exact forces of the vehicle before, during and after a crash. What's more these devices can be bought for as little as £190.
The benefit of such technology is that a driver can quickly submit the evidence of an accident claim to their insurance company. Without this vital evidence it can take up to six weeks or more to assign fault when two drivers are arguing over the accident.
The main costs caused when investigating and deciding fault are:
- Hire cars for the duration of the decision before fault is decided
- Further cost of hire vehicles once fault is decided
- Vehicles off the road with potential loss of earnings for both parties
Many drivers who have been caught out in a 'cash for crash' accident suffer even more severe losses. In these circumstances the drivers are often forced to directly suffer insurance loss, and can lose their no claims. Once the time comes to renew their policy these 'crash for cash' victims are then forced to pay higher insurance premiums and are at risk of not being able to get insured again.
Insurance companies have known about these 'black box' type of systems for many years (since 2002) now with Aviva launching their 'Pay as you Drive' scheme based on these types of systems.
What shocks the every day driver is that insurance companies don't openly offer any saving to drivers using in car cameras. This is surprising as there are clear benefits of using the in car camera systems
If a CCTV system can help to lower buildings insurance, why can't a camera in a car do the same?? More action is needed from insurance companies.
If they offer savings to drivers, more drivers will use these devices, which will help to enhance road safety, will prevent dishonest drivers from abusing their insurance policies and which will in turn help to lower car and vehicle insurance premiums once again.
By Joe Louis Williams
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