The price of motor insurance continues to fall

The price paid for the average private comprehensive motor insurance policy fell slightly in the third quarter of this year, according to figures by the ABI.

The ABI’s quarterly average private comprehensive motor insurance premium tracker published today shows that the average premium paid fell by £2 to £356 over the previous quarter. Over the past 18 months the average premium has fallen by 7%, which has resulted in over £700m in lower premiums being passed onto motorists.

James Dalton, the ABI’s Head of Motor and Liability, said: “Insurers continue to deliver on their commitment to pass on savings to customers following the introduction of much needed reforms to the civil justice system, including the reduction of excessive legal costs, last year. We welcome further Government action to ban inducements from claimant solicitors that encourage fraudulent whiplash claims.

“But work needs to continue to ensure that the new system for producing whiplash medical reports by accredited independent medical experts is introduced quickly and effectively to ensure that honest motorists continue to benefit from lower premiums through the Government reforms.”