Motorists have been issued with two severe warnings over the course of the week, both of which has a direct effect on car insurance policies they may own.

Amidst ominous forecasts of heavy rain on its way for the autumn and winter, motorists have been urged to be cautious with their cars, or be prepared to suffer in more ways than one. Damage to a vehicle can be expensive to correct leaving you with no support system, even from your own insurance company.

Swinton have confirmed that extensive flooding can cause damage to vehicle which may not be covered on motor insurance cover even if the cover you own is a fully comprehensive cover.

Cover

Steve Chelton, Insurer Development Manager at Swinton said: “Some drivers choose third party only or third party fire and theft policies because they are often less expensive and uncomplicated. However these car insurance policies might not provide cover for flood damage and it is crucial that drivers are conscious of what is and isn’t included in their policy.”

Swinton went on to offer advice for motorists travelling in flood affected areas, such as moving your motor car to higher ground, to not drive through flood water and not to start a car which is submerged in water.

The most flood prone areas of the UK are Yorkshire, Humberside and the East and West Midlands.

Rise

This news has been compounded by the revelation that car insurance premiums are still on the rise despite the economic downturn. The figures released by the British Insurance Premium Index shows a 7.5 per cent increase in premiums, which now relates to an average total sum of £724.28.

Simon Douglas, director of AA Insurance, says: “Despite these rises the car insurance industry continues to make an underwriting loss: for every £100 taken in premiums, more than £105 is paid in claims. Insurers are particularly concerned about increasing legal costs and personal injury claims which last year rose by 22 pc.”

"The average car accident insurance claim for a young male driver is nearly £4,500 compared with £2,700 for their female peers. For drivers aged over 30, the average claim is £1,400 for men and £1,200 for women."

The rise in premiums bucks against the current trend within the nation’s economy. Much to the delight of motorists across the country, petrol prices are falling on a consistent basis and many insurance policies are reducing their premiums. Unfortunately this is not the case for motor insurance, the one insurance which is compulsory in today’s climate.

Joanne Mallon, Sainsbury’s car insurance manager, commented: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs, given that car insurance premiums are rising and the cost of driving is now at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance."