The price of average comprehensive motor insurance fell by 3% in the first quarter of 2014 to £358, compared to the same period last year, according to Association of British Insurers figures
30 APRIL 2014 | BY JUDITH UGWUMADU
This equates to just under £30 a month, the ABI said. It noted that since 2012, average comprehensive premium costs had fallen by 14%.
James Dalton, the ABI's head of motor insurance, said: 'The fall in average comprehensive motor premiums reflects the commitment of insurers to pass on the savings from reforms to the civil litigation system last year to hard-pressed motorists, even when savings materialise.
'Keeping a lid on cost pressures, such as fraudulent whiplash claims and the claimant lawyers' excessive costs, is essential to ensure that UK motorists continue to get the best motor insurance deal.'
At the weekend, the British Insurance Brokers’ Association suggested that motor insurance premiums continued to fall by 5.5% in Q1 2014. The brokers also attributed the reduction to a crackdown on uninsured driving and the reforms to the legal system.
The Competition & Markets Authority is currently investigating the £11bn private motor insurance market after it concluded that the market was distorted and premiums too high. Its final report is due to be published in September.