The reforms that hit the personal injury sector were introduced by the Government under the compromise that insurers would lower car insurance premiums.
Has this actually happened?
One word. No.
Last summer, The Guardian reported that the cost of car insurance soared by 11%.
The insurers claim this is because of government cuts to the discount rate used to calculate compensation payouts. They believe victims of accidents have been overcompensated, but this is far from the truth. For years, claimants have been undercompensated because insurers will do everything they can in a claim to save money.
It’s now 2018 and once again we hear that car insurance premiums have risen a further 4%.
The Independent reported that UK drivers have been hit with another 4% rise in their premiums. This could be as high as 9% if you’re a driver in Lincoln and Wolverhampton. There were some drops with the biggest drop being 4% for drivers in Sutton, South West London.
Overall, the increase in premium has affected the over-65s and those aged between 21 and 24 the most.
Experts predict car insurance premiums will continue to rise until the Government makes changes to the discount rate system.
1. Pixabay; Jakub Orisek; https://pixabay.com/en/highway-traffic-germany-streets-2909336/