We would all love to see our car insurance premiums fall rather than be faced with the usual annual increase when we receive our renewal notices. Well, you will be interested to hear about the proposals put forward by Aviva as, if implemented, they claim that car insurance premiums could reduce by as much as £50 per annum that is no small sum.
They have produced a report entitled: “Road to Reform: Tackling the UK’s Compensation Culture” in which they suggest three significant reforms: –
1. Minor, short-term injuries of a personal nature as a result of road traffic accidents could be compensated for just by arranging to pay for rehabilitation costs even if the policyholder was at fault. At the moment, it is estimated by the Association of British Insurers (ABI) that whiplash claims cost the insurance industry in the region of £2 billion. If Aviva’s recommendation was taken on board it could save around £900 million.
2. Referral fees in respect of car hire, car repairs and car recovery should be banned saving the insurance industry around £200 million.
3. Limit the use of personal injury lawyers to more complex cases that would save around £300 million.
As you can see, the total potential saving is about £1.4 billion. This would save the policyholder on average around £50 per annum.
These suggestions by Aviva make interesting reading and it will be worth waiting to hear how the rest of the car insurance providers respond to this initiative. There can be no doubt that the majority of policyholders will welcome this report.
Yes, we have seen the average cost of car insurance premiums come down in the last few months but any further reductions would be most welcome. As always, we would welcome the thoughts of our readers so do feel free to leave your comments on our website.