Confused.com says there has been a rise of 20 per cent in second quarter
‘The insurance industry promised to reduce premiums if claims fell’
Despite measures that have helped the industry to save half a billion pounds in the past three years, motorists are still being overcharged and thanks to a government crackdown are making less claims.
New figures released by The Times show that personal injury cases have fallen by 23,000 under the reforms, in a move that has saved insurers almost £520 million.
In addition, premiums have jumped by as much as a fifth in the past 12 months alone, adding around £115 to bills, even though a government crackdown on the no-win, no-fee industry has led to a drop in whiplash claims.
Louise Ellman, chairwoman of the Commons transport select committee told The Times: ‘The bottom line is that the insurance industry promised that they would reduce premiums as whiplash claims fell, and if they haven’t done it, they’ve reneged on their promise.
‘Fraud must be wiped out but the insurance industry must also honour its promises.’
A confused.com study which used information from prices quotes to motorists found that the average policy stood at £715 on average for a comprehensive car insurance premium, compared to £600 this time last year.
In July Amanda Stretton, motoring editor at Confused.com, said: ‘We’ve not seen price rises of this magnitude for five years – a 19 per cent annual increase is substantial to say the least.
‘And these price rises are being felt across the board, for drivers of all ages and genders, across all UK regions.
‘This, combined with rising fuel prices and increased motoring costs across the board, could result in a sizeable dent in drivers’ pockets.’