MOVES to counter the “compensation culture” blighting Britain have led to a sharp fall in car insurance premiums, with the average price dipping by more than £100.
A study by the AA revealed the average comprehensive motor insurance “shoparound” figure, involving quotes from a number of markets, had fallen to £531 in the first three months of 2014.
The research showed there was a 5.6 per cent reduction on the figure for the last three months of 2013 and a 16.6 per cent fall on the figure for January to March of last year.
The January to March 2014 figure for third party, fire and theft was £725 – an 8.4 per cent drop on the last three months of last year and 18.5 per cent down compared with the first three months of 2013.
But the AA warned it could be the end of the good news for motorists. AA Insurance director Simon Douglas said: “Legal reforms introduced by the Justice Ministry to curb organised attempts at whiplash injury fraud coupled with better fraud detection by insurers have also certainly helped put downward pressure on premiums. But there is no evidence that this is delivering any significant reduction in the number and value of personal injury claims.”
Insurance costs for drivers aged 17 to 22 fell 20.5 per cent compared with the first three months of last year while 23 to 29-year-olds benefited from a 19.9 per cent drop.