Cheaper motor insurance could be a reality sooner rather than later for hard-pressed drivers following the Government’s announcement it is introducing the new Civil Liability Bill reforming personal injury compensation.
Crusader reported a couple of weeks ago insurers were calling for an end to delays in bringing in legislation.
Annual insurance costs for drivers have been predicted to fall by up to £50 a year as costs from cash for crash claims and whiplash injury abuses (said to cost motorists £5 million a day) among others are curbed.
At present, claims are rising. The UK has more than 750 personal injury claims management companies with a turnover of £200 million.
While it could take a year or more for the new laws to come into force, it is thought market competition may lead to insurers offering better deals ahead of that.
And they are pledging to pass on the savings. Rob Townend, managing director of leading insurer Aviva UK General Insurance, said: “Together with the Financial Guidance and Claims Bill, these measures signal the end of the era of crash for cash and nuisance calls. I repeat our commitment to pass on 100 per cent of the savings to our customers.”
“We also welcome the Government’s commitment to updating how the personal injury discount rate is calculated.
“This important legislation should ensure that those who suffer serious injuries receive full and fair compensation without the unnecessary impact on premiums.
“Again, we commit to passing on any savings from this legislation to our customers.”