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RAC Insurance comments on ABI data showing motor premiums are at a high

News   •   Feb 03, 2017 00:01 GMT

A new report from the Association of British Insurers published today says motor insurance premiums have reached the highest levels on record with the average price paid in the fourth quarter of 2016 for private comprehensive cover standing at £462.

RAC Insurance director Mark Godfrey said: "We urge the Government to quickly publish its proposals from the whiplash reforms consultation which closed at the start of this year. We would specifically like to know how they will ensure savings from the reforms are passed on by insurers, especially as the Government has been a significant contributor to rising costs through two recent increases in Insurance Premium Tax as well as another hike due in June.

"Insurance costs are now listed as a significant concern by 26% of motorists surveyed for the 2016 RAC Report on Motoring, and with fuel prices having increased 17p a litre in the last year, motorists are facing a double whammy of rising costs this year.

"The Government needs to start thinking about how it can incentivise take-up of black box insurance products which reward careful drivers as they could help to reduce insurance costs for new and young motorists and in doing so create a new generation of better, safer drivers."