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Average cost of comprehensive motor insurance continues to rise

By 10th February 2017No Comments
Insurers urge action to clampdown on unscrupulous claims management firms
The average comprehensive motor insurance premium rose slightly in the third quarter, according to the most comprehensive survey of prices paid on the market.
The ABI’s Quarterly Motor Insurance Premium Tracker – which surveys actual premiums paid by customers – shows that:

  • Between July and September, the average price paid for comprehensive motor insurance (new policies and at renewal) was £379*, compared to £374 for the previous quarter.
  • There has been a 5.6% rise in the average premium paid in the year up to this September.

With the 3.5% increase in insurance premium tax due on 1 November, it is clear that action is needed to tackle unscrupulous claims management companies who are fuelling a rise in the cost of motor insurance.
Rob Cummings, the ABI’s Manager for General Insurance, said:
“Motorists continue to benefit from a competitive motor insurance market and can shop around to get the best deal. But mounting cost pressures are inevitably leading to higher premiums.
“With the introduction of the higher rate of Insurance Premium Tax in November set to push up average premiums, the need to tackle rogue claims management firms is vital.
“The current review of claims management firms regulation, and the work being undertaken by the insurance fraud taskforce, needs to clampdown on those firms and lawyers who drive up unmeritorious claims by plaguing motorists with unsolicited calls, texts, misleading advertising and high charges. Both the CMC review and the insurance fraud taskforce need to introduce meaningful reform to help tackle the UK’s compensation culture and reduce pressure on insurance premiums.”
For more information see our industry data update.
*A small change in the premium amount from previously reported figures is due to one major motor insurer altering their reporting base. This reporting change has been reflected in these figures, on which it has not had a significant impact.

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

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