Company car insurance is likely to show some significant year on year increases over the next few years as insurance companies try to recoup the cost of rising personal injury claims. According to the AA Insurance Premium Index, personal injury claims, featuring whiplash in particular, are now a huge problem as no win no fee claims are taken up by many business drivers.

Although the cost of the claims is in many cases relatively small at only a few thousand euro, the volume of claims is causing a big problem. Some companies have even started to tackle the problem by offering instant settlements with out the need to refer the issue to solicitors or courts. The AA also makes the point that premiums will rise due to rising repair costs, which ironically often stem from increased vehicle safety features.