UK premiums continue to fall
The average price paid for private comprehensive motor insurance fell in the first quarter of 2015, over the previous quarter according to the ABI’s latest Quarterly Average Private Comprehensive Motor Insurance Premium Tracker published today.
Since the first quarter of 2013, insurers have passed on nearly £1bn to motorists through lower premiums following the Government’s reforms to the civil justice system, including a reduction in fixed legal fees,
The Tracker highlights that the average premium paid in the first quarter of the year was £360, down two per cent on the last quarter of 2014. While this up slightly on the same period last year, it is down five per cent on the first quarter of 2013.
Rob Cummings, ABI’s manager, general insurance, said, ‘Motorists are continuing to benefit from a highly competitive motor insurance market, and from insurers delivering on their commitment to pass on savings to customers following the Government’s reforms to ensure personal injury claims are paid in more efficient and proportionate manner.
‘However, the initial impact of the reforms is starting to fade and the increase in the number in low value personal injury claims is putting pressure on pricing. The next Government should continue the good progress made over recent years by increasing the Small Claims Track limit to at least £5,000 to help tackle the number of frivolous and fraudulent whiplash claims and help ensure premium reductions are sustainable.’