Tag Archives: Whiplash

Motor Insurance Premiums Rise

CarOver the past couple of years there has been an upward trend in the cost of insuring motor vehicles. This is possibly something that you have noticed when receiving your renewal notice and, if so, has hopefully triggered you to seek comparative quotations through the likes of ourselves to see if we can find you a better deal from another provider.

Well, the Association of British Insurers has recently produced the ABI Premium Tracker that monitors what the cost of motor insurance has been over an extended period of time. Apparently, the average premium paid for fully comprehensive cover throughout 2017 was £481 per annum. This was an increase of 9% in comparison to the cost 12 months ago that, in monetary terms, equated to a rise of £40 per annum.

Another disturbing statistic is the fact that the average cost of insuring a motor vehicle increased by a staggering 29% since back in 2014.

There are a number of factors that have caused this increase in the cost of motor insurance. For instance, repair costs of vehicles have gone up, there has been a rise in the number of people seeking compensation for whiplash injuries, Insurance Premium Tax has gone up and there has been a change in the calculation of compensation payouts.IPT

The ABI is encouraging the Government to stop increasing the Insurance Premium Tax, make changes to how claims for lower value claims for whiplash are dealt with and also to look at the Ogden Discount Rate which is used to work out what compensation someone should receive who has suffered a significant injury as a result of a road traffic accident. These things are all with a view to potentially reducing how much someone pays for their motor insurance.

So, is there anything that you can do to mitigate such an increase? Well, you may wish to consider shopping around for cheaper cover but if you do, make sure that the level of cover meets your needs.

Here at AIB Insurance, we have been able to help arrange car insurance for a number of customers at a lower premium than their existing insurer has been charging them so why not give us a call on 02380 268 351 to discuss your requirements and obtain a quotation without any obligation.

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.