The Association of British Insurers is Helping Tackle High Premiums

Last year, the average cost of comprehensive vehicle insurance jumped by more than 10% to £434 to much uproar. In its report ‘Lifting the Bonnet on Car Insurance’, the Association of British Insurers has revealed its plans to help tackle these growing premiums.

The report contains a five-point plan which details how the association will do this:

1. It’ll further reform the personal injury compensation system to stop frivolous or exaggerated claims.
2. There’ll be no further rises in Insurance Premium Tax (IPT) as recent hikes have seen the average comprehensive motor policy rise by £16 a year.
3. There are plans for making young drivers safer by introducing a Graduated Driver License, which could also help lower their insurance costs.
4. The development of safer vehicles with features such as autonomous emergency braking (AEB) will be incentivised.
5. Insurance fraud will continue to be tackled, taking into account the recommendation of the Insurance Fraud Taskforce. 70,000 fraudulent insurance claims worth £800million were made in 2015, which if addressed could save honest customers considerably.

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