Personal injury claims pursued through claims management companies are behind a rise in the cost of motor insurance according to a leading industry body.
The Association of British Insurers (ABI) have revealed figures that show the average annual motor insurance premium has risen by 2.1% during the second quarter of this year to a cost of £367. This figure is almost 3% up on the same point last year, but still below the peak reached in late 2013 before Government legislation slashed fixed legal fees for personal injury claims.
"Motorists have seen a solid two years of lower insurance premiums as a result of the Government reforms to tackle frivolous personal injury claims, and over a billion pounds worth of savings have been passed on to customers," said the ABI's Rob Cummings.
"But with pressure on claims costs and an increase in Insurance Premium Tax adding and additional £12.80 to the cost of the average policy from November, other factors are starting to put up costs. This makes action against claims management companies and tackling whiplash claims a top priority."
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