Motor insurance payouts have reached record levels this year with more than £23 million typically being paid every day, the Association of British Insurers (ABI) has said. Costs relating to theft claims have surged by nearly a third this year so far compared with the same period in 2017. Rising repair bills are also behind the increase according to the ABI, which released the figures to coincide with its motor conference in London. The payouts cover theft, own vehicle and third-party property damage, as well as personal injury compensation. In the first nine months of 2018, motor insurers paid out a total of £6.4 billion to private motorists and in compensation to victims of motor crashes, equating to over £23 million every day, the ABI said. This was up 4% on the same period last year, to the highest level since ABI started collecting the data at the start of 2013. Read More The tricks to cheaper car insurance The ABI's motor claims data was collected from its … [Read more...] about Car insurance payouts hit new high
Liability car insurance cost
Motoring by Press Association 25/09/2018, 4:26 pm FacebookTwitterWhatsAppEmail Send us a story Sign up to our Daily newsletter The government is looking to tackle fake or exaggerated claims for whiplash from car accidents with new legislation. Whiplash injuries cost the insurance industry up to £2bn per year, according to the Association of British Insurers (ABI), with some 1,500 claims a day. That sum is passed on to consumers, with £90 a year added to the average insurance premium. Since the average cost of cover is £481, that means whiplash claims are responsible for nearly a fifth of a driver’s insurance cost. The new Civil Liability Bill, which started in the Lords, where it had its first reading in March, aims to cut the number of spurious personal injury claims. It will bring in a set payment scale, with people only able to claim up to £3,725 except in exceptional circumstances. It will also prevent insurers settling cases … [Read more...] about Car insurance premiums set to fall as government cracks down on whiplash claims
The parliamentary term between summer recess and autumn party conferences is always brief but it has been a busy one. I was pleased to have the opportunity of speaking on the Civil Liability Bill, and to participate in the committee scrutinising the Bill last week. Whilst this Bill sounds a little mundane, this new law will importantly help to see motor insurance premiums reduced for hard-pressed drivers in Stoke-on-Trent. Reining-in the exaggerated and often fraudulent personal injury claims that have driven up insurance costs: costs which rose last year at their fastest ever rate. Over the past decade personal injury claims have risen by 70 per cent meaning motorists are needlessly paying more and more every year, while vehicles have become safer and road accidents have fallen by 31 per cent. Clearly the current balance is not right and is unfairly penalising ordinary motorists who pay the price of overinflated premiums. This is especially important for younger drivers like myself … [Read more...] about Personally speaking: New law to help drive down insurance costs
The excuse widely given is that compensation levels here are four times higher for moderate injuries than in the UK, thereby creating a greater incentive for opportunistic claims. The data indicates otherwise. As a proportion of the population and number of registered vehicles in both jurisdictions, we in Ireland only have half the UK's frequency of personal injury claims. Both jurisdictions suffer from exaggerated injury claims. It took the UK more than a decade to catch up on the deterrents introduced in Ireland from 2004 under which a fraudster risks 10 years in jail and a fine of up to €100,000 in addition to having their claim dismissed and picking up liability for defendant legal costs. But are the sanctions working? And if not, why not? The test for success is difficult to define as we don't know what volume of claims are dodgy. Mind you, insurers seem to know. The federation of insurer lobbying groups across Europe declares on its website that 10pc of all payouts involve … [Read more...] about Are fraudster sanctions from our car insurance working? If not, why not?
The Office of Competition and Consumer Protection (UOKiK) has concluded that there was no illegal activity in relation to the increase in motor liability insurance prices. The increases resulted from the growing operating costs and deteriorating financial results of insurance companies, the study found. Drivers have experienced a significant increase in liability insurance, and therefore UOKiK decided to conduct a market study in which it analyzed whether this could be due to price collusion. UOKiK found there were economic factors causing the price hikes, such as the increase in the prices of repairs and medical services, as well as the fact that more Poles are driving abroad. … [Read more...] about No collusion over car insurance increase – UOKiK