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Raising small claims limit key to ensuring cheaper motor insurance says the ABI

The ABI is urging the Government to increase the small claims limit from £1,000 to £5,000 to help ensure that the fall in motor insurance premiums can be sustained.

The move would be a crucial, much-needed step in turning the tide on fraudulent and exaggerated low value personal injury claims, such as whiplash.

Speaking at an ABI seminar today that assesses the impact one year on of the Government’s reform of the UK’s civil litigation system, James Dalton, the ABI’s Head of Motor and Liability said:

"A simple, fair, cost-effective compensation system is crucial to ensuring competitive motor insurance premiums. One year on from the introduction of the Government’s much-needed reform of civil litigation, insurers are delivering on their commitment to reducing insurance premiums with the average comprehensive motor premium having fallen 14% since the start of 2012.

"But more needs to be done. The glaring omission from this programme of reform is raising the small claims limit to £5,000 to ensure that lower average motor premiums can be sustained. If consumers are to continue to enjoy reductions in the cost of their car insurance, the Government needs to act now. The ball is in its court."

For more information, read James Dalton's blog.

Last updated 01/07/2016