Recommendations to government to help bring down car insurance premiums
The ABI has set out a five point plan to help bring down motor insurance premiums, that includes reviving plans to crack down on whiplash fraud.
Action needs to be taken to make car insurance more affordable, the ABI said in a report on car insurance, pointing to a 10% rise over the last year in the average comprehensive policy to £434.
The ABI report, ‘Lifting the Bonnet on Car Insurance’ calls on the government to stem the tide of frivolous and exaggerated personal injury claims.
Former Chancellor of the Exchequer George Osborne’s whiplash crackdown plans have been shelved, but the delay in tackling the problem is costing motorists nearly £3m a day, the ABI said.
The ABI also called on the government to rule out any further increases in Insurance Premium Tax (IPT). Two increases in the past year have seen the tax jump by two thirds to 10%, adding £16 to an average comprehensive policy.
The ABI report also called for graduated driver licensing to help make young drivers safer, and incentives to make autonomous braking compulsory for new cars to make cars safer.
And the ABI said the government should implement the recommendations fo the Insurance Fraud Taskforce on tackling insurance fraud.
James Dalton, ABI’s Director of General Insurance Policy, said: “Consumers benefit from a very competitive insurance market, but insurers are facing the perfect storm of rising costs from personal injury claims, repair bills and Insurance Premium Tax.”