Insurance Premiums Drop

The largest decrease in insurance premiums since 1994, figures released by AA have highlighted this massive drop. Comprehensive car insurance has been dropped by 9.8% from on average £594.86 to £659.53, a welcomed drop for what seemed to be an endless increase of insurance premiums. Other types of insurance have also dropped however not as significantly, third party fire and theft saw a 4.8% decrease down to an average of £820.58. The insurance decreases couldn’t come at a more perfect time, with fuel prices increasing, the cost of repairs increasing and everything else just increasing in general this will be a well-deserved saving.

The main reason insurance premium prices where raising in cost was due almost solely to the amount of whiplash injury claims which were extremely costly and hard to challenge as the diagnosis is often subjective. Down to these claims approximately on average around £50 was added to yearly insurance premiums as it cost them more than £1 billion to settle these claims. The reason they can now lower this again is down to the newly improved fraud detection used by the insurance industry added with the tightening of the law to do with new whiplash claims.

Britain is the whiplash claim capital of Europe which is a truly shameful reputation. Further factors that are contributing to the fall is the brand new gender equality laws in regards to car insurance.

“The main insurance products are motor insurance, life insurance and retirement products such as annuities. The change will affect new insurance policies and renewals but existing annuities should not be affected.”

“Women, who tend to benefit from cheaper car insurance premiums than men due to lower accident rates, may see their costs go up, while men could see a slight decrease.” – The Telegraph

Due to this the drop in price will see men’s insurance decrease significantly more on top of the already decreasing price. The reason whiplash claims are going to decrease is down to the no win no fee lawyers now taking payment which now makes claims much more expensive to pursue which will hopefully see a huge decrease in claims resulting in an even further decrease in insurance and perhaps most importantly it will repair Britain’s reputation within the EU as the whiplash claim capital.

Having worked in the car rental industry for over 15 years, he really knows his stuff. Rob heads up our marketing department and as a keen traveller, always has a new location to talk about. Particularly if there is a golf course nearby.