The ABI’s 10-Point roadmap to tackling rising insurance costs for drivers
The Association of British Insurers (ABI) has published a roadmap outlining 10 concrete steps aimed at tackling soaring insurance costs for drivers.
1
Help consumers make informed decisions. The industry has pledged to do more on transparency around which vehicles are more costly to insure. For example, increasing visibility of the Group Rating system (which rates vehicles on risk) should help consumers make more informed choices.
2
Combat vehicle theft. The ABI is exploring a partnership with the police to aid in the recovery of stolen vehicles from ports. It’s also working with vehicle manufacturers, the Mayor of London’s office, and the National Police Chiefs' Council to find more ways to prevent vehicle thefts.
3
Tackle fraud and uninsured driving. Continuing to crack down on fraud and uninsured driving will reduce the costs borne by law-abiding drivers for their insurance.
4
Improve road safety and road infrastructure. Through campaigns, modern safety measures and road improvement.
5
Support new and novice drivers. Young and inexperienced drivers pose a greater risk to themselves and other road users. The phased approach of graduated driving licenses has been proven to improve safety.
6
Reduce the impact of the Personal Injury Discount Rate (PIDR). The rate for large, severe injury compensation needs a rethink, as these costs filter back to premiums.
7
Continue whiplash reform. Reform principles enacted for whiplash - which set reasonable compensation amounts and controlled the cost of injury claims - should be applied to similar injuries (bruised knees, sprained ankles etc).
8
Advocate for safety-focused vehicle technology. Making assisted safety features mandatory in new cars would contribute to improved road safety. Beyond assisted systems, automated vehicles could revolutionise road safety but only if legislation ensures user and system safety.
9
Lower Insurance Premium Tax (IPT). IPT adds £67 to the average policy. It’s getting worse as prices rise. It punishes responsible choices.
10
Support the repair sector. Work with government, vehicle manufacturers and independent mechanics to create a robust repair sector that can fix a broader array of vehicles. This will increase competition and choice for customers.