ABI once again calls for Small Claims limit increase as car insurance premiums fall

The Association of British Insurers (ABI) has said that the Small Claims Track limit must be increased to at least £5,000 to maintain a trend in falling motor insurance premiums.

The renewed call has come after the release of figures showing that the motor insurance premiums have fallen again.

The insurance body said that the average price for cover fell in the first quarter of 2015 was £360, down 2% on the last quarter of 2014. Although the figure is higher than the same period last year, it is also 5% lower than it was in the first quarter of 2013.

According to the ABI, insurers have passed on nearly £1bn to motorists through lower premiums since 2013, following the Government’s reforms to the civil justice system.

Rob Cummings, the ABI’s general insurance manager said that motorists were continuing to benefit from insurers passing on savings to customers following the Government’s reforms to personal injury claims.

“However, the initial impact of the reforms is starting to fade and the increase in the number in low value personal injury claims is putting pressure on pricing,” he said.

“The next Government should continue the good progress made over recent years by increasing the Small Claims Track limit to at least £5,000 to help tackle the number of frivolous and fraudulent whiplash claims and help ensure premium reductions are sustainable.”

Mark Dugdale