RMI: Premium rises can’t continue
RMI Bodyshops (NAB & VBRA) has called for investigations in the continued rise of motor insurance premiums, warning of potential damages to both the automotive industry and wider economy if it goes on unchecked.
The average annual cost of a new policy rose £82 in the three months up to September, a 16.3% jump, with insurers blaming whiplash claims, Insurance Premium Tax, and a trend among consumers to shop around for new policies each year.
RMI director Jason Moseley said, ‘Following reports that motorists are facing higher car insurance premiums than a year ago, we are frustrated that there is no corresponding increase in service provision, and that the Competition and Markets Authority (CMA) is failing to engage with us on this issue.
‘We would urge The Association of British Insurers (ABI), The Financial Conduct Authority (FCA), and the Financial Ombudsman Service (FSO) to conduct their own investigations in the continual rise of private motor insurance premiums.
‘If this allowed to continue unchecked, it will hinder the economy, reduce consumer mobility and potentially stall the currently buoyant new and used car markets that currently contributes significantly to both employment within the sector, and allows the UK to remain as a strong market for vehicle manufactures post Brexit.’
RMI Bodyshops has already raised concerns that government proposals to reform how the insurance industry deals with claims for whiplash injuries have been put on hold by the government. It says this is indicates a total disregard for any form of the control or regulation on the social and economic utility of motor insurance.
You can sign their petition to investigate Motor Insurance Premium Pricing here