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Average motor insurance premium down by 4 in 2014 says the ABI

The average price paid by motorists for private comprehensive motor insurance during 2014 fell by 4% compared to 2013, with the average premium in the last quarter of the year only 1% higher than the last quarter of 2013, according to figures out today from the Association of British Insurers (ABI).

The ABI’s Quarterly Average Private Comprehensive Motor Insurance Premium Tracker for Q4 shows:

In 2014 we have seen an increase in low value claims starting to feed through into pricing - James Dalton, ABI
  • The average premium paid was £372, up 1% over the same quarter a year ago.
  • The current average premium remains less than that for the second quarter of 2013 when lawyer fees were reduced, with total savings of £595 million in lower premiums being passed on to motorists since then.

James Dalton, the ABI’s Director of General Insurance Policy, said:

"The motor insurance market remains highly competitive, with insurers delivering on their commitment to pass on savings to customers following the introduction of reforms to the civil justice system.

"In 2014 we have seen an increase in low value claims starting to feed through into pricing. This is not surprising as rising economic confidence, high employment levels and falling oil prices have seen more cars on the road and greater use of cars for work and business use which increases accident volumes.

"The introduction of MedCo in April to oversee the production of independent medical reports in whiplash claims should deter the cheats and ensure honest motorists continue to get competitively-priced motor insurance.”

For more information see our industry data update.

Last updated 01/07/2016