Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Average price of insurance increases by £8 in Q2, says ABI
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Average price of insurance increases by £8 in Q2, says ABI

Date: 30 July 2015   |   Author: Daniel Puddicombe

The average price of an annual comprehensive motor insurance policy increased by 2.1% in Q2 of 2015 compared to the first quarter of the year, according to the Association of British Insurers

According to the ABI's quarterly average insurance tracker, motorists paid an average of £367 for their policy in the second quarter of the year, up from £359 in Q1.

The average price of a premium in Q2 of 2014 was £356.

Average premiums are still lower than they were in Q2 of 2013 (£377) when the Government introduced changes to the justice system, including a reduction in fixed legal costs for personal injury claims

The ABI clamed that insures have passed on savings of £1.1bn to motorists since the reform.

However, the ABI claims the number of personal injury claims related to road accidents was 12% higher for the year ending April 2015 compared with the previous 12 months.

"With pressure on premiums increasing however, it's important the Government continues its work to tackle the compensation culture and attack the high cost and number of whiplash claims," said Rob Cummings, ABI manager for general insurance. "UK drivers benefit from one of the most competitive motor insurance markets in the world, but with pressure on claims costs and an increase in insurance premium tax adding an additional £12.80 to the cost of the average policy from November, other factors are starting to put up costs."



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