Motor insurance costs in ‘overdrive’
The ABI’s Premium Tracker shows that in the fourth quarter of 2017 the average price paid for private comprehensive motor insurance was £493 – the highest quarterly figure since ABI started collecting the data in 2012.
The figure, which was up six per cent on the same quarter 2016, meant the average premium paid over the whole of 2017 was £481 – nine per cent higher than the previous year, adding an extra £40 to the average premium.
The data highlights how the average cost of motor cover has leapt by 29% since 2014 and the ABI is urging the government to help reduce the cost of motor insurance. The ABI is urging the government to introduce, as quickly as possible, its reforms to the discount rate; push ahead with reforms to how lower value whiplash-style claims are handled; and freeze the Insurance Premium Tax (IPT) rate at 12%.
Rob Cummings, ABI’s assistant director, head of motor and liability, said, ‘The rising cost of motor insurance shows no sign of abating. Changes to how compensation pay-outs are calculated, Insurance Premium Tax, more whiplash-style claims and rising repair bills are all piling on the pressure for cash-strapped drivers.
‘The government must urgently bring forward relief for motorists by introducing its reforms to create a fairer compensation system, and tackling low value whiplash style claims without delay, as well as freezing Insurance Premium Tax. It is time cash-strapped motorists got a break.’