APIL Condemns Rising Motor Insurance Costs Despite Falling Injury Claim Expenses

Jonathan Scarsbrook, immediate past president of the Association of Personal Injury Lawyers (APIL), has strongly criticised the rising cost of motor insurance premiums following the publication of HM Treasury’s report on the impact of the Civil Liability Act 2018.

Jonathan explains, “There has been a 71% increase in motor insurance premiums since the reforms were introduced, despite an 11% decrease in the cost of injury claims settled by car insurers*. The evidence has always pointed to repair costs being behind rising premium prices. It’s time the Government focussed on these costs and the cost of hire vehicles rather than removing the right to full compensation for physical and psychological harm.”

He continued, “Slashing compensation for painful, avoidable whiplash injuries to a fraction of their actual value made a mockery of compulsory insurance, which is designed to compensate people properly for avoidable injuries.”

Mr Scarsbrook emphasised that consumers are ultimately losing out: “This is a lose-lose situation for consumers and they should be furious. They are spending more than ever for compulsory insurance on the understanding that they will be looked after if anything goes wrong. While vehicle damage can be inconvenient and worrying, bodily harm is the worst possible thing that can happen to someone.”

The full HM Treasury report on the Civil Liability Act 2018’s effect on motor insurance premiums is available here: https://assets.publishing.service.gov.uk/media/67d7f2129dc953ac3bfe92d4/2024-06-06_-_Civil_Liability_Act_2018_Report.pdf

Image provided by the Association of Personal Injury Lawyers (APIL)

*APIL analysis of Office for National Statistics (ONS) and Association of British Insurers (ABI) data.

Francesca Kaye