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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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About RAC Media Centre

The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic British motoring organisation and has been championing drivers since 1897. Today it is one of the UK’s most trusted brands, providing complete peace of mind to over 15 million drivers across breakdown cover, insurance, and mobile servicing and repairs.

Its nationwide patrol force attends more than two million breakdowns every year, while its position as the UK’s leading independent insurance broker helps motorists find the right cover with confidence. The RAC has also reshaped the service, maintenance and repair market with its Mobile Mechanics, who carry out servicing and repairs at drivers’ homes or workplaces.

Committed to innovation, the RAC is fully electric‑ready with mobile EV charging technology for stranded drivers, and a suite of digital and data‑led solutions that make motoring easier and more affordable for consumers and fleets. These services come together in myRAC – the all‑in‑one app for vehicle maintenance, cheaper fuel finding and breakdown assistance.

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