ABI Says Reducing Whiplash Costs Key to Lower Auto Premiums

ABI Says Reducing Whiplash Costs Key to Lower Auto Premiums

August 11, 2014

“Tackling the cost of whiplash claims is essential to ensure UK motorists continue to benefit from lower average motor insurance premiums,” The Association of British Insurers said in a bulletin.

According to the ABI’s latest quarterly average private comprehensive motor insurance premium tracker shows that “while the price paid for the average private comprehensive motor premium in the second quarter of the year rose slightly by £2 [$3.36] to £361 [$606] over the previous quarter, premiums have fallen by 5 percent over the last year, with insurers passing on cost savings of £378 million [$634.7 million] in lower premiums to motorists during the period.

James Dalton, the ABI’s Head of Motor and Liability, said: “UK motorists are continuing to get the best deals from a highly competitive motor insurance market. Everyone wants to see lower premiums, but Government figures show that whiplash type claims have risen by 21 percent since 2010, while road accidents have been falling.

“With whiplash claims costing motorists over £2 billion [$3.36 billion] a year, the Government needs to press ahead with its much-needed plans to tackle the UK’s whiplash epidemic, including introducing reforms to medical reports used for these claims and increasing the Small Claims Track Limit to £5,000 [$8,395].”

Source: Association of British Insurers (ABI)

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