The average price for car insurance has fallen for the second consecutive quarter according to one of the most reliable indicators of what the UK public are paying.
The Association of British Insurers (ABI) uses a Premium Tracker, which is the only market survey which looks at what consumers pay, rather than the quotes.
The ABI’s latest research suggests that the average price paid was down £3 (1%) on the first quarter and £5 down on the same quarter last year. This average price, £475, could be because insurers are passing on cost benefits from the Government’s planned reforms to personal injury compensation.
“It is positive for customers that they are already starting to see the benefits of the planned reforms, but lower insurance costs can only be sustained if Parliament follow through and fix our broken compensation system,” said Rob Cummings, from the Association of British Insurers.
“Insurers have a track record of passing on savings, as they did when the original personal injury reforms were introduced back in 2013, before their impact waned as some claimant lawyers and claims management firms found ways to exploit the system. This is why implementing in full the reforms of The Civil Liability Bill, such as increasing the small claims track limit to £5,000, represents a last chance saloon to strike a fairer compensation system for motorists, claimants and compensators.”
The country’s leading insurance companies have previously committed to passing on cost benefits if the reforms are implemented in full.