But in last quarter of 2014 the average premium was up 1% when compared to same period in 2013
The average price for a comprehensive motor insurance fell by 4% in 2014 compared with 2013, according to the ABI’s latest quarterly premium tracker.
In the last quarter of 2014, the average premium was £372, up 1% on the same quarter in 2013.
ABI director of general insurance policy James Dalton said in 2014 the industry had seen an increase in low value claims starting to feed through into pricing.
He added ““This is not surprising, as rising economic confidence, high employment levels and falling oil prices have seen more cars on the road and greater use of cars for work and business use, which increase accident volumes.”
The introduction of MedCo in April to oversee the production of independent medical reports for whiplash claims is expected to “deter the cheats and ensure honest motorists” will continue to get competitively priced motor insurance.
Dalton added: “The motor insurance market remains highly competitive, with insurers delivering on their commitment to pass on savings to customers following the introduction of reforms to the civil justice system.”
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