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Car insurance costs drop, but are motorists really feeling the benefit?

April 17 2018

According to research provided by Confused.com, average motoring insurance costs have decreased by 2% over the last 12 months. The potential reasons for this include changes to the ‘Ogden Rate’ back in September 2017, which has been altered once again, but this time to compensate insurance for long-term injury claims.

An additional reason for the drop in insurance premiums for motorists is the government’s desire for proposals to reduce false whiplash claims to be in place by April 2019. This would mean that insurance companies could save expenditure on whiplash related pay-outs that should not have been the case; as a result, allowing them to reduce their annual premiums.

However, there are campaigns against these reforms. Spokesman for Access to Justice (A2J), Andrew Twambley said:

“Insurers are acting prematurely if they are reducing prices to account for whiplash reforms because the Bill to bring the reforms in has only just been introduced to Parliament.

The reforms are controversial and are opposed by MPs from all sides of the house, including some MPs on the government benches, so there is no guarantee that the proposals will become law…”

This means there could continue to be some up and down fluctuation in price of car insurance for motorists. Representing Confused.com (who partly profit from drivers switching insurance companies), Amanda Stretton said:

“Finally drivers have some good news with the end of rising car insurance costs in sight.

However, it is clear that many motorists are not seeing these savings reflected in their renewal letters, so it is more important than ever to shop around if they want to get a better deal”

With this in mind, some insurance companies may have not reduced their premiums in accordance with the upcoming proposal to alter whiplash claims. For motorists requiring legal representation in court following an accident, Grahame Stowe-Bateson have a selection of solicitors qualified to deal with these issues. To speak to a member of our dedicated team, visit our contact page to find your local office.


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