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The average insurance premium for an annual comprehensive policy increased by 2.1% in the second quarter of 2015, compared with the first three months of the year, according to the latest figures from the Association of British Insurers (ABI).
The ABI’s Quarterly Average Private Comprehensive Motor Insurance Premium Tracker shows that the average premium has risen from £359 to £367.
The cost of motor insurance had started to fall in 2013, after the government introduced reforms to the civil justice system, which included a reduction in fixed legal fees for personal injury claims: before them, the average premium was £377.
However, data from the ABI’s Claims Portal highlights a year-on-year increase of 12% in the number of personal injury claims related to road accidents for the year ending April 2015.
Rob Cummings, the ABI’s manager for general insurance, said: “Motorists have seen a solid two years of lower insurance premiums as a result of market trends and in the wake of the government’s reforms to tackle frivolous personal injury claims, and over a billion pounds’ worth of savings have been passed on to customers.
“With pressure on premiums increasing however, it’s important the government continues its work to tackle the compensation culture and attack the high cost and number of whiplash claims.
by Craig Thomas
See Full Story at express.co.uk