Relief for drivers as car cover costs start to fall
THERE is finally some good news for motorists, as latest figures reveal that recent hikes in car insurance premiums are rapidly going into reverse.
Policy prices are now more than 10 per cent lower than a year ago, saving the typical motorist almost £80 when they come to renew.
The average premium is now £648.10, down from £726.93 this time last year, the latest AA Index shows.
Insurance director Janet Connor said this will come as welcome relief after several years of large increases: “Premiums had been driven upwards by the fast-growing whiplash claims epidemic, fuelled by unscrupulous cold-call law firms, as well as higher car repair costs.”
They were also spurred on by Government plans to review compensation payouts for traffic injuries, but it has now reformed these plans after widespread criticism.
“That has triggered a fall in premiums in the expectation that claims costs would fall, while intense competition among insurers has also helped,” Connor said.
Another reform, delayed to 2020, will ban “no win, no fee” claims for soft-tissue personal injuries under £5,000. “This should immediately cut the number of claims made through cold-claim firms,” she added.
Two thirds of motorists have received these kinds of calls over the last year, with the majority being called on numerous occasions.
“The outlook for drivers is positive,” she added.