Car insurance Updated:
Figures released by the AA have revealed a drop in average car insurance premiums, with the trend expected to continue over the course of this year.
Over the first three months of 2013, a typical premium quoted for a yearly comprehensive car insurance policy stood at £746.75, representing a quarterly fall of 1.4%. Over the past year, car insurance premiums have dropped by 4.1%.
According to the insurer, drivers have faced massive increases to their insurance premiums over the past three years.
Premiums are anticipated to drop even further going forward as the initial points of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) take effect.
Principals under the reform include a £4,000 increase to the limit for personal injury claims cases in small claims courts where legal costs can't be recovered, as well as a ban on the payment and receipt of referral fees for claims that include a personal injury.
The AA welcomed the reform and said it hopes it will prompt further crackdowns to curb the number of whip-lash injury claims. The insurer believes around 70% of motor incidents result in an injury claim, even in the event of no injury being suffered, totaling about 570,000 claims each year at a cost of £2 billion.
Simon Douglas, director of AA Insurance, said: "Car insurance has not been far from the headlines for all the wrong reasons as insurers struggled to balance premiums against claims costs. "Sharp hikes in personal injury claims, fraud and uninsured drivers, to say nothing of last year's gender directive and changing regulations, have all helped to pile on the pounds," he said.
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* We reviewed 435807 quote requests on Quotezone’s car insurance comparison service between July and September 2012. We took the cheapest from the median (halfway point) quote returned to each customer to produce a ‘representative’ saving. 50% + achieved a representative saving of £434.40 or more. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
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