MOTOR PREMIUMS CONTINUE TO RISE POST CMA INVESTIGATION

Published 08/08/2016 00:00:00 in Press Releases

The Association of British Insurers (ABI) has published their Quarterly Average Private Comprehensive Motor Insurance Premium Tracker today (08/08/16).

The Tracker shows that the average price paid for comprehensive car insurance has again risen from Quarter 1 to Quarter 2 of 2016. Whilst not a huge increase, when comparing the statistics to the same period of 2015, it becomes clear that prices have increased by 10% in the last 12 months: on average, private comprehensive motor insurance premiums in 2016 are £39 more expensive than in 2015.

ABI claim that these figures ‘illustrate the ongoing pressure on premiums driven by increases in Insurance Premium Tax (IPT) and the rising costs of personal injury claims.

RMI Bodyshops Director Jason Moseley comments, “It is not just insurance tax and personal injury claims that are causing the price of insurance premiums to rise. RMI Bodyshops commented on an investigation conducted by the Competition and Market Authority in 2014, which aimed to reduce the price of private motor insurance. Since this investigation, however, the price of premiums have increased month on month, and this shows no sign of slowing down. We feel that several factors are contributing to this:

  • Claims-farming is still prevalent within the industry, which is driving up prices
  • Insurers continue to charge one another high costs for non-fault accidents
  • Third party claim intermediaries take a cut of pay-outs

“Fair treatment by insurers is something that RMI Bodyshops shall continue to push for. Motor insurance is a social utility that needs to be monitored by the government to ensure that the motoring public are protected. We fear that higher insurance premiums could ultimately affect jobs – if the price of premiums rises too high, people will be unable to insure their vehicle to allow them to travel to and from work.”

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Press Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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