Reports from a leading motoring organisation show car insurance premiums are set to rise yet again.
The reports show the coming rise in premiums can be attributed to the failure of reforms put in place by Justice Secretary Chris Grayling, which failed to have an impact on the high number of fraudulent claims filed by UK motorists.
The AA recently released a report which showed the average insurance quote in the first three months of this year was more than £100 cheaper than during the same period in 2013. This fall in price can be attributed to insurers competing for business as they anticipated the effects of new measures to combat phoney whiplash claims, and other motor insurance scams, the AA said.
However the report predicted premiums will soon go into reverse, lumping motorists with sharp premium rises from July onwards.
Ian Crowther, a spokesman for the AA, said: “Our best guess is they will level off in the current quarter and start to rise in the third quarter. They could start to rise quite steeply.
“It’s great for the consumer at the moment. But insurers are saying this can’t go on, and that it is utter madness.”
Young drivers, who have to pay the most for comprehensive insurance, enjoyed the biggest dips in premiums in the first part of this year, with falls of about 20 per cent for 17 to 29-year-olds.
Ian added: “The falls that we are experiencing at the moment have been going on for three years now, and the rate of fall has been accelerating.
“This was created mainly by the reforms that were proposed by the Ministry of Justice and insurers dropped premiums as they began to anticipate some return.
“However, that return has not been delivered. There is no evidence that this is delivering any significant reduction in the number and value of personal injury claims.”
The aforementioned reforms included the introduction of panels of accredited doctors to assess whiplash claims, which are reported to be costing motorists up to £2 billion a year and adding an average of £90 to every care insurance premium.
Chris Grayling, the Justice Secretary, said: “We are turning the tide on the compensation culture and doing our bit to help drivers with the cost of running a car.
“We have made major law changes which have been a significant factor in these record falls in car insurance premiums. But we want to do more, and we are now going after the fraudsters who force up the costs for everyone else.”
For drivers who have narrowly avoided the revocation of their UK driver’s licence, they can also expect an increase in insurance premiums. As a result of totting up penalty points, the chance of losing their licence becomes a very real possibility, but with the help of an experience team of Motoring Solicitors such as Just Motor Law, they may be able to keep hold of their driver’s licence, based on the negative impact that losing their licence could have on them and those around them.
The penalty points however, remain in place, and will have a direct impact on the cost of their insurance until the points are eliminated.
For help avoiding the revocation of your driver’s licence, be sure to contact Just Motor Law today on 0845 415 4658.