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Motor insurance remains highly competitive but pressure on premiums is growing

Commenting on a report out today from Confused.com, indicating a year-on-year price increase for motor insurance of 14%, James Dalton, Director of General Insurance Policy at the Association of British Insurers, said:

“Motor insurance remains a highly competitive market, with motorists shopping around for the best deals. But pressure is growing on premiums. Cold callers and ambulance-chasing lawyers are still finding ways to exploit the system, with  government data suggesting a 5% increase in whiplash style claims. This is driving up costs for honest motorists. In addition, the Government has doubled Insurance Premium Tax in just over a year, and repair bills are going up as cars get more sophisticated. So while insurers are doing all they can to control costs, these pressures show how important it is that the Government’s latest proposals to tackle low value whiplash style claims are implemented fully and as quickly as possible, and that there is no further rise in Insurance Premium Tax.”

Last updated 18/01/2017