Access to justice group disputes claims of runaway costs
Access to justice campaigners have challenged the ABI’s claims of runaway increases in the cost of motor insurance.
The Access to Action Group (AJAG), using the insurer’s body’s own statistics, says the premiums actually paid for cars and motorbikes as opposed to quotes , have increased by just 4.8% between 2003 to 2010.
If the figures for commercial and other vehicles are added, insurance costs fell by 3.3%, according to AJAG’s analysis.
AJAG co-ordinator Andrew Dismore said: “The ABI have long been pronouncing that insurance premiums have been sky- rocketing, as part of their campaign against those seeking compensation for road accidents. It now seems the true picture might be rather different. In fact, for three of the last seven years, premiums overall actually fell.
“Of course, many people will have seen their insurance rise steeply, and unsurprisingly and understandably they complain about it. However that is not the whole picture. Others will have seen far less steep increases, some will pay the same and even others less.
“Averaging the number of insured vehicles over the whole of insurance premium income paid (as opposed to quotes), we see a much clearer picture as to what has been going on.
“The debate around the current bill to restrict the rights of accident victims needs to be conducted with the most accurate and best evidence available, bearing in mind how important the issue is, rather than the ABI’s untested assertions”.
The research and methodology can be downloaded here.
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