Car Insurance Premiums falling
Good news for Motorists
Car insurance premiums have decreased with the average price falling by more than £100 for the first three months of the year. The AA said the average comprehensive motor insurance figure was £531 at the start of 2014. This was 5.6% down on the last three months of 2013 and 16.6% down on the figure for the same period last year.
It is a fact that fraudulent claims pushed up the price of motoring insurance especially the whiplash claim. Two years ago a report from the House of Commons Transport Committee stated that the increase in claims for whiplash injury is the main cause of the rise in motor insurance premiums. Committee chairman Louise Ellman said “whiplash claims were very costly for insurers to challenge and this was a type of injury ‘where diagnosis is often subjective.” Since then the Association of British Insurers have released figures showing false claims from drivers for whiplash have topped more than £1billion, because of these false claims approximately £50 was being added to insurance premiums. Now with improved fraud detection by the insurance industry and tightening of the law the number of new whiplash injury claims has been curbed.
However, the AA warned that the downward trend could be under threat. AA insurance director Simon Douglas said "legal reforms introduced by the justice ministry to curb organised attempts at whiplash injury fraud coupled with better fraud detection by insurers have also certainly helped put downward pressure on premiums. But despite this there is no evidence that this is delivering any significant reduction in the number and value of personal injury claims. I do expect premiums to start rising again this year unless the fraud issue can be dealt with. If not, it's likely to be young drivers, those with a poor claims history or those in localities where there are frequent claims who will find it most difficult to obtain competitive cover."
Justice Secretary Chris Grayling said "we are turning the tide on the compensation culture and doing our bit to help drivers with the cost of running a car. We have made major law changes which have been a significant factor in these record falls in car insurance premiums. But we want to do more, and we are now going after the fraudsters who force up the costs for everyone else."
Hopefully young drivers how have experienced the biggest fall in premiums in the first part of this year will continue you to do so. The biggest fall in figures was in the north west of England at 21% with East Anglia with the least. The age bracket which pays the cheapest comprehensive insurance was those aged 60-69, with an average of £299.81.