RAC comments on latest Motor Premium Index from the ABI

Commenting on results from the latest ABI Motor Premium Tracker, RAC Insurance director Mark Godfrey said:

“The Government’s string of insurance premium tax rises combined with the change to the discount rate for life-changing personal injury compensation claims have clearly already had a punitive effect on the cost of motor insurance.

“The fear is that we are just at the beginning and there is a very real prospect that prices will increase much further still.

“Younger drivers have been particularly hard hit by these changes, but in particular by the insurance premium tax rises. For some, telematics ‘black box’ policies have helped to mitigate the impact by providing significant reductions when compared to standard car insurance.

“The Government has consulted on the discount rate and we would urge early recommendations to provide a fair solution for claimants and motorists alike.”

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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 UK brand, and provides complete peace of mind to nearly 14 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

At the forefront of new solutions for business fleets and consumers, the RAC’s breakdown service is electric-ready with mobile EV charging technology and be called on using myRAC – its all-in-one route planner, fuel finder and breakdown reporting app