The ABI has released figure showing the average motor premium has risen by 9 per cent in 2017 to a record high, adding an extra £40 to the average motor insurance policy.
The ABI’s latest Motor Insurance Premium Tracker measures prices consumers actually pay for their motor cover, rather than quotes - shows that in the fourth quarter of 2017 the average price paid for private comprehensive motor insurance was £493 - the highest quarterly figure since ABI started collecting the data in 2012.The average cost of motor cover has leapt by 29 per cent since 2014.
The ABI is urging the Government to help reduce the cost of motor insurance by reforming how compensation for large personal injury compensation awards is adjusted (known as the discount rate) and how lower value whiplash-style claims are handled.
Simon Perry, an insurance expert at Quadient added: “These record premiums mean insurers should watch the road ahead with caution: the balance of power is shifting between businesses and consumers. In fact, our research recently revealed that more than half (52 per cent) of UK consumers believe they have more power compared to five years ago – thanks to a growing number of options, ease of switching, and ways to share good or bad experiences on social media.”
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