Third Party Injury Claims Drop

Apparently, according to research carried out by the Institute and Faculty of Actuaries (IFoA), there has been a fall in third party motor insurance injury claims of around 10%. This is the first time this has happened in the last ten years.

There has been a fall in the amount paid out for third party injury claims

We are sure that you will agree that this is good news for the car driver as it is believed to already have had at least some positive impact on premiums. With people still trying to contain their household expenditure, any drop in premiums has got to be a good thing. It is felt this reduction in claims has been due to certain measures contained within the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO).

It is estimated that there has been a 5% reduction in injury claim costs with the average claim dropping from £5,000 to £4,750.

However, despite this news, it is still important that motorists continue to shop around for the best deal for their car insurance. Do bear in mind however that it is not just about trying to find cheaper car insurance premiums. It is vital that the cover offered by another provider is the level that you require. There is no point in spending some time finding insurance at a lower monthly outlay only to discover that the policy does not provide you with what you are looking for by way of features and benefits.

Let’s just look at an example. If your existing insurer provides fully comprehensive car insurance for, let’s assume, £350 per annum and that includes car breakdown cover (roadside assistance) and another insurer will provide the same level of cover but without the car breakdown cover for £340 per annum would you really want to transfer to the latter insurer if you still need breakdown cover? The answer is going to be “no” because you are unlikely to be able to get breakdown cover separately for only £10 per annum. Do you see what we mean?

So, do be careful when shopping around. Try to compare like with like.