Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

Car insurance cost drops for first time in three years

Latest news

    Car in ditchImage copyright Getty Images

    Car insurance prices have fallen for the first time in three years, a survey suggests, owing to a reaction to government policy.

    Reforms to the law on whiplash and a review into how compensation is paid for long-term injuries were thought to be behind the drop.

    The research, for comparison website Confused.com, suggests prices have dropped by 2%, or £13, in a year.

    Separate figures show the number of female car owners has risen sharply.

    The number of cars registered to women has risen by 21% since 2007 to 11.8 million, according to the Society of Motor Manufacturers and Traders. This compares with a 10% rise in the number of cars registered to men, to 17.8 million.

    Insurers are forbidden by law to set different car insurance premiums solely based on gender. However, women pay a lower cost in general owing to the fact that, on average, they drive smaller, less expensive cars than men and have fewer high-value accident claims.

    The average insurance price difference between male and female drivers is £95, according to the Confused.com research.

    Changes to government policy on the so-called discount rate had led insurers to “soften” their prices, the price comparison website said.

    The discount – or Ogden – rate is designed to compensate insurers for the cost of long-term injury claims. It was reduced by the government last April, costing insurance firms large amounts of money. However, in September the Ministry of Justice said it would revise the scheme.

    Amanda Stretton, from Confused.com – which makes its money, in part, from drivers switching insurers – said: “Finally drivers have had some good news with the end of rising car insurance costs in sight.

    “However, it is clear that many motorists are not seeing these savings reflected in their renewal letters, so it is more important than ever to shop around if they want to get a better deal.”

    View the original article: http://www.bbc.co.uk/news/business-43751418

    http://www.bbc.co.uk/news/business-43751418

    In the same category are

    Chingford fire: Connington Court evacuated Image copyright @LAS_HART Image caption Dozens of firefighters were sent to help tackle the blaze A home for people with learning disabilities has...
    Ariana Grande unveils emotional new single, No Tears Left To Cry Image caption The singer released No Tears Left To Cry worldwide at 0500 GMT Ariana Grande has returned with her first new music since the terrori...
    Spy poisoning: Salisbury residents warned of toxic ‘hotspots’ Image caption More robust hoardings have begun to replace police cordons, including at The Mill pub Toxic "hotspots" of the nerve agent used to po...
    Commonwealth meeting: Leaders to discuss who will success Queen as head Image copyright AFP/Getty Images Image caption The Queen has endorsed Prince Charles to take over her role as head of the Commonwealth Commonwealt...
    Ex-MP Tessa Jowell first to donate data to medical database Media playback is unsupported on your device Media captionTessa Jowell opens up about living with brain cancer Baroness Tessa Jowell has become the ...
    Berlin set for mass evacuation as WW2 bomb is defused Image copyright EPA Image caption The bomb was found by workers on a construction site in Heidestrasse A large-scale evacuation is to take place i...

    Leave a comment

    Your email address will not be published. Required fields are marked *