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Reducing unnecessary costs is key to sustained lower motor insurance premiums says the ABI

Tackling the cost of whiplash claims is essential to ensure UK motorists continue to benefit from lower average motor insurance premiums, says the ABI.

The ABI’s latest quarterly average private comprehensive motor insurance premium tracker out today shows that while the price paid for the average private comprehensive motor premium in the second quarter of the year rose slightly by £2 to £361 over the previous quarter, premiums have fallen by 5% over the last year, with insurers passing on cost savings of £378 million in lower premiums to motorists during the period.

James Dalton, the ABI’s Head of Motor and Liability, said:

"UK motorists are continuing to get the best deals from a highly competitive motor insurance market. Everyone wants to see lower premiums, but Government figures show that whiplash type claims have risen by 21% since 2010, while road accidents have been falling.

"With whiplash claims costing motorists over £2 billion a year, the Government needs to press ahead with its much-needed plans to tackle the UK’s whiplash epidemic, including introducing reforms to medical reports used for these claims and increasing the Small Claims Track Limit to £5,000.”

More information is available in our industry data section.

ABI Motor conference 2014Hear more about the ongoing civil justice reforms, including those aimed at tackling whiplash claims, and from keynote speaker Chis Grayling, Justice Secretary, at the ABI Motor Conference on Tuesday 2 December 2014 - find out more and register you place now.

Last updated 01/07/2016