Average UK motor insurance premiums paid in 2017 highest since 2012
LONDON (Reuters) – The average premium paid for motor insurance in Britain jumped 9 percent in 2017 to the highest level since 2012, the Association of British Insurers (ABI) said on Wednesday.
The average premium paid over 2017 was 481 pounds, 40 pounds higher than a year earlier, the ABI said in a statement.
The price paid for private comprehensive motor insurance was 493 pounds in the last quarter of 2017, up 6 percent from the same period in 2016, the ABI added, citing its motor premium tracker.
Premiums rose for most of last year, partly in response to new rules for personal injury claims.
A government decision last year to cut the personal injury discount rate contributed to an increase in the size of payouts, denting insurers’ profits and driving premiums to record highs.
However, premiums have fallen for the past two quarters after Britain said it planned to change the way personal injury lump sum payments are calculated, a move which would cut the size of those payments.
“The rising cost of motor insurance shows no sign of abating. Changes to how compensation pay-outs are calculated, Insurance Premium Tax, more whiplash-style claims and rising repair bills are all piling on the pressure for cash-strapped drivers,” said Rob Cummings, Assistant Director and Head of Motor and Liability at the ABI.
Motor insurance providers in Britain include Admiral, Direct Line, esure and Hastings.