Motor premiums that are already at record levels may rise again between now and January, according to the Association of British Insurers (ABI). An increase in insurance tax helped send premiums 8% higher to £462 in the past year, the ABI said. The ABI's director general Huw Evans said while the ABI is pleased with Government plans to reform whiplash-style personal injury compensation, "the benefits could be wiped out if they don't defuse the discount rate bombshell". It warned that the changes made by the government to the way compensation payouts are calculated could see insurers pay more in accident claims. The number of people who have been hit with a bill for their car crash claims has risen sharply since 2010, when it was just over half as many claimants. But with many of those contracts set for renewal in January and the changes to the so-called Ogden Rate likely to make them more expensive, insurers will pass those costs on to customers.
Motor premiums that are already at record levels may rise again between now and January, according to the Association of British Insurers (ABI). An increase in insurance tax helped send premiums 8% higher to £462 in the past year, the ABI said. It warned that the changes made by the government to the way compensation payouts are calculated could see insurers pay more in accident claims. The number of people who have been hit with a bill for their car crash claims has risen sharply since 2010, when it was just over half as many claimants. But with many of those contracts set for renewal in January and the changes to the so-called Ogden Rate likely to make them more expensive, insurers will pass those costs on to customers.