Over the past year, premiums are nearly 6% cheaper – but it’s not going to last, warns AA insurance MD Janet Connor. Indeed, it’s already happening for older drivers: “We’re starting to see insurers quoting higher prices and I think that’s the beginning of a trend.”
However, she adds, “the rate of increase isn’t going to be turbocharged; the market remains very competitive.”
What’s more, new guidance for assessing whiplash should hopefully kerb “out-of control claims that are now leading insurers to increase premiums”: worryingly, more than 1 in 10 motorists admits they see nothing wrong in making a dodgy injury claim in the event of an accident.
“I hope this will put off those looking for an easy cash win but not discourage those with a genuine injury,” said Connor.
“My greatest fear is that if insurance fraud such as whiplash injury claims isn’t brought under control, and quickly, we will see a repeat of the spiralling premiums of 2010 and 2011 where the cost of the average policy rose by over 40% in just 12 months.”