Motor insurance premiums are falling, according to the Association of British Insurers (ABI).
The average price paid for private comprehensive motor insurance in the first three months of this year (Q1) was £360.
This was two per cent down on the figure for the last three months of 2014 and, although it was a slight rise on the figure for Q1 in 2014, it was five per cent lower than in Q1 2013.
The ABI said that since Q1 2013 insurers had passed on nearly £1 billion to motorists through lower premiums following the Government’s reforms to the civil justice system, intended to crack down on the proliferation of fraudulent claims, including whiplash injury claims.
ABI’s general insurance manager, Rob Cummings, said drivers were “continuing to benefit from a highly competitive motor insurance market”.
But he warned that the initial impact of the Government reforms was starting to fade and that the increase in the number of low-value personal injury claims was putting pressure on pricing.
Post election, Mr Cummings called on the next government to take steps to ensure progress to tackle “frivolous and fraudulent whiplash claims” continued.