Tag Archives: Insurance Premiums

Record Set For Average Amount Claimed On Motor Insurance Policies

Car CrashThe Association of British Insurers (ABI) has recently published some interesting statistics relating to claims on motor insurance policies. Specifically, it has revealed that the average amount paid out last year for each motor insurance claim was the largest amount since records started to be kept for this sort of cover.

The figure was £2,936. Apparently, a couple of reasons why this sort of cover hit a record was down to the fact that the cost of repairing a motor vehicle has gone up as well as the amount paid out to meet claims when a car is stolen has risen which happens all too often.

Last year, a staggering £8.1 billion was paid out by insurers to meet all motor insurance claims. This was a similar figure to 2016. It would be potentially good news if the amount of such claims fell in 2018 and beyond as this is one of the many factors that affect how much insurance companies charge for their car insurance. Perhaps if the amount paid out for claims was to fall, we may see a reduction in the cost of our motor insurance policies.

Another interesting statistic is that the average amount paid out for a claim in respect of personal injury was £10,816 in quarter four of 2017. This is a large sum and is also a factor that Personal Injurydictates how much a motor insurance provider charges new and existing customers who renew their cover. Again, it would be lovely if we were to see the average amount paid out for a personal injury claim to drop as this is another factor that may impact on the amount motor insurance providers charge for their cover.

Apparently, the number of claims submitted for personal injury dropped slightly in 2017 when compared with 2016. Of the claims submitted, there were 320,000 that insurers agreed to pay out for.

Of course, policyholders would prefer not to have to be faced with having to claim on their car insurance policies but when they do it is important that they are confident that the insurance company the cover is arranged with will pay out in the event of a claim as quickly and effortlessly as possible. So, if you are looking for quality motor insurance that is not only competitively priced but also where the insurance company is well known for the number of claims that they agree to meet, then why not get in touch with us on 02380 268 351 and a member of our team will gladly do all that he or she can to assist.

What Happened To Car Insurance Premiums In 2016?

Unfortunately, the cost of car insurance has been rising for many motorists. If you own a car then you are legally obliged to make sure that it is insured unless it is declared SORN (Statutory Off Road Notification) and kept off the public road network.

Insurance Premiums IncreasingOne of the price comparison websites called Confused.com has been producing its car insurance price index for 10 years on a quarterly basis. According to that index, the average cost of fully comprehensive car insurance has increased by £95 per annum (14%) to £767 per annum in the 12 months to the end of 2016. In fact, just in the 4th quarter of 2016, such premiums rose by an average of 4% that, in monetary terms, is an extra £30 per annum. The annual increase was due to a number of factors including things like the amount paid out for whiplash claims and Insurance Premium Tax (IPT) rising.

The figure of £767 is the highest that motorists have had to pay since around the middle of 2012.

Younger drivers are, on average, paying the most for their cover with someone of 17 years of age having to find an average of £2,112 per annum. In some cases, that is probably more than some young motorists would pay for a used car. Most drivers who are at least 60 years of age are, on average, finding that their premiums are less than £500 per annum although, if you are 68, you could find yourself having to find an average of £515 per annum.2016 Budget

Most areas of the UK have seen premiums go up. The cheapest region was the Scottish Borders in which premiums averaged £531 per annum in the 4th quarter of last year. Inner London motorist are paying the most for car insurance where comprehensive car insurance premiums rose by an average of £152 per annum in the 12 months to December 2016 to an average of £1,237 per annum.

Regrettably, not enough policyholders bother to see if they can obtain their cover cheaper elsewhere. So, when you receive your renewal notice from your existing insurer, why not get in touch with us here at AIB Insurance on 02380 268 351 and let us see if we can help you save some money on your car insurance.

Whiplash Claims Clampdown Could Benefit Motorists

As many of you will be aware, the cost of car insurance has been rising in the last 12 months or so for a number of reasons. One of the factors that effects premiums for such cover is the amount that insurance companies pay out for claims made by people who have suffered personal injuries.

WhiplashWhilst the majority of such claims are no doubt perfectly legitimate, there are unfortunately some whiplash claims that are submitted by a number of motorists that are either fraudulent or inflated. Unfortunately, the honest motorist suffers financially as a result of such claims by paying higher motor insurance premiums.

It is interesting that there has been a drop in the number of road traffic accidents yet, rather surprisingly, there has been a 50% increase in the number of whiplash claims being received by insurers here in the UK in comparison to 10 years ago.

Well, the Ministry of Justice has produced a consultation paper in respect of whiplash claims and it is hoped that, should the suggestions put forward be implemented, it could save the insurance industry in the region of £1 billion. Insurance companies have agreed to pass on any savings to its motor insurance policyholders. As a result, motorists could see their premiums reducing by in the region of £40 per annum.2fb38cdd00000578-3380021-image-a-3_1451559066430

Some of the measures proposed include increasing the current £1,000 personal injury claims limit to £5,000 that can be dealt with in the small claims court, putting a ceiling of £425 on how much someone can claim for a minor whiplash injury which is considerably less than the £1,850 that is being paid out on average for such claims at the present time and medical evidence would have to be provided to prove the injury before a compensation payment is made.

The consultation process is to be in place until the 6th January 2017. We are sure that you will agree that anything that can be done to lower the cost of motor insurance is to be welcomed.