David Cameron: We’ll drive down car insurance rates

In the Downing Street summit last week between leading car insurance companies and the Prime Minister, David Cameron has said that he wants to ‘drive down’ car insurance rates for the average British driver, experts say.

While the motor insurance bill paid by the average driver is around £410, this is not true for many classes of Brits, such as younger motorists.  Indeed, discount car insurance for young drivers is exceedingly difficult to find, even through the use of car insurance comparison sites!

Young drivers pay massive premiums, with female drivers having to fork out around £1,682 on average and young males paying out an eye-watering £2,977.  These prices were part of the impetus behind the prime minister’s meeting with the Association of British Insurers, cabinet ministers, and insurance providers such as Zurich, the Co-op, and Aviva.

Mr Cameron said he would not rest until the Government took steps to curb the massive increase to motorists making whiplash-related injury claims, as costs associated with these claims have been spiraling upward – even when accident figures have been on the decline for the past few years.  With the UK earning the less-than-honourable appellation of the eurozone’s “whiplash capital,” steps need to be taken to reduce the costs insurers incur in defending the glut of claims, which they claim leaves them no choice but to increase the average premium by about £90 across their entire customer base in order to recover these costs.

Strategies for the reduction of these claims discussed by the government include increasing the threshold for bringing such a claim and using improved medical evidence in court.

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