Highest ever Q1 premium highlights need to fix broken system to help millions of motorists
The average price paid for comprehensive motor insurance fell in the first quarter of 2018, but remained higher than it has ever been in the first quarter of the year according to the ABI’s latest Motor Insurance Premium Tracker. The tracker is the only market survey which measures prices consumers pay for their motor insurance, rather than quotes.
It shows that in the first quarter of 2018:
- The average price paid for private comprehensive motor insurance was £478, down £13 on the last quarter of 2017, and the first quarterly fall in premiums in two years.
- The average premium of £478 was up £14 (3%) on the same quarter last year – making it the highest Q1 figure on record.
Reasons behind the fall:
The price of motor insurance is subject to seasonal trends and average motor insurance premiums usually fall in the first quarter of the year due to the new car registrations in March, which leads to more demand for motor insurance and more competition. The announcement of the personal injury Discount Rate reforms in September last year and the introduction of the Civil Liability Bill may also have contributed to a more pronounced fall in the quarter.
Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said:
“While this small fall in the last few months gives some relief to motorists, it is in line with seasonal trends and the underlying cost pressures from things like personal injury claims remain. It can’t be right that for every £1 in compensation paid to whiplash claimants, an additional 47p goes to their lawyers. The Civil Liability Bill now going through Parliament will fix a broken system and help millions of motorists whose premiums had been going up and up over the last two years.”
-ENDS-
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