The cost of comprehensive motor insurance fell to £356 in the third quarter of this year, down £2 on the second quarter, according to the Association of British Insurers.
31 OCTOBER 2014 | BY JUDITH UGWUMADU
Over the past 18 months, insurers have passed on total savings of £700m to motorists as a result of lower premiums, the ABI noted.
James Dalton, the ABI's head of motor and liability, said: 'Insurers continue to deliver on their commitment to pass on savings to customers following the introduction of much needed reforms to the civil justice system, including the reduction of excessive legal costs, last year.
'We welcome further government action to ban inducements from claimant solicitors that encourage fraudulent whiplash claims.
'But work needs to continue to ensure that the new system for producing whiplash medical reports by accredited independent medical experts is introduced quickly and effectively to ensure that honest motorists continue to benefit from lower premiums through the government reforms.'
From 2015, independent medical panels will review whiplash insurance claims to ensure only genuine cases receive payouts.
The change was announced by the Ministry of Justice as part of a package of government measures to reduce the costs of running a car, last year.
Last week, the Institute and Faculty of Actuaries (IFoA) reported that legal changes imposed in 2013 led to a 10% reduction in average third-party motor insurance claims.
The IFoA highlighted that the Legal Aid, Sentencing and Punishment Offenders Act (LASPO) had a significant impact on motor insurance injury claims.
However, only last month the Competition and Markets Authority back-tracked on plans to place a cap on replacement car and repair charges, which it originally thought would help steer down the price of premiums further for UK motorists.
It said the cap could not be justified as the problem only caused an increase in the average premium of £3 per year.
It is, however, encouraging some action by those with the ability to make the market work better within the existing legal framework.
