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

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."

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

About the RAC

The RAC is an iconic British driving services brand and has been championing drivers since 1897. Today it is one of the UK’s most trusted names, 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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