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RAC reacts to proposals to change personal injury discount rate in England and Wales

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RAC reacts to proposals to change personal injury discount rate in England and Wales

Following news today that draft legislation has been put forward that would change the way in which the personal injury discount rate is set in England and Wales, head of RAC Insurance Martin Dyson said:

“This is good news for motorists as the price of car insurance has risen by around 10% in the last year with the Government’s change to the discount rate being a significant factor. This led to insurers having to make larger compensation payments which in turn the industry then had to fund in the only way it could by increasing premiums.

“The way the rate is to be set going forwards should be fair to those receiving compensation payments while also helping to ensure car insurance premiums are as affordable as possible.

“We welcome the announcement that the rate is to be reviewed at least every three years following consultation with an expert panel.”



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The RAC provides complete peace of mind to 12m UK private and business drivers, whatever their motoring needs. Its services include:

The RAC also works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989.

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