Whiplash reform sees insurance premiums drop

  • Whiplash reform sees insurance premiums drop

Whiplash reform sees insurance premiums drop

Unveiling a new civil liability bill in March, the Minister of Justice said it would set a fixed amount of compensation for whiplash claims and require medical evidence before such claims can be settled. The cost of running a auto has become unmanageable for a lot of people in the last two years and this new data will offer a ray of light for those who need to drive, but are struggling to meet the costs. In September a year ago, the government backtracked after the insurers said the new formula would overcompensate crash victims.

Aside from analysis of the market, Confused also faced another problem: lower prices surely means people need to do less shopping around and - this is where it gets awkward - less scouting of comparison sites?

European Union gender rules stop insurers from assess drivers based on their gender, but there are other risk factors which cause men to have higher premiums.

Gender differences - men on average pay £95 more than women - persist despite an European Union directive forbidding insurers to assess drivers on their sex.

'For example, men tend to drive more expensive cars with larger engines, on average, so they make higher-value claims.

Meanwhile, female drivers aged between 61 and 65 are paying the least - less than half the national average - at £363.

Similarly, prices decreased across all age groups, with drivers aged 27 benefiting from the largest quarterly cut in premiums at 11%, while 68-year-old motorists experienced the smallest drop at 3%. However, drivers in London can celebrate - their premiums have fallen by around 6% compared with the same period in 2016/17.

Welsh motorists also saw a 2% rise, with those living in Central and Northern Wales now paying £629 on average.

"Finally drivers in Northern Ireland have had some good news with the end of rising vehicle insurance costs in sight", she said.

"Being loyal doesn't always pay, so to get the message across to cost-burdened drivers the team and I are guaranteeing to beat the price insurers are charging at point of renewal".

According to comparison site Confused.com, the average premium in the first three months of 2018 was £768, down by 2%, or £13, on the same period a year ago.