Insurance
ABI calls for reforms to assist young drivers
The Association of British Investigators has today called for reforms to assist young drivers with the cost of motor insurance.
The Association says that despite insurers passing on savings to motorists due to civil justice reforms in the past few years, measures to improve young driver road safety have stalled; as a result, premiums for young drivers have remained high.
Three years ago, Prime Minister David Cameron held a ‘summit’ with the insurance industry, and it was agreed that road safety for young drivers and fraudulent insurance claims must be tackled.
In the years since, UK drivers have benefitted from lower average premiums (since 2012, the average premium has fallen by 10 per cent to £372), total savings of nearly £600 million due to civil justice system reforms, and the allocation of independent medical experts to conduct examinations for whiplash claims.
The ABI, however, are calling for further improvements in three key areas. First, the introduction a graduated driving licencing regime, aimed at reducing the high number of serious road crashes involving young drivers; 17-19 year olds make up 1.5 per cent of all licence holders, yet are involved in 12 per cent of fatal or serous road crashes.
Second, an increase in the Small Claims Track limit from £1,000 to £5,000 for low value RTA claims. The small claims track, with the appropriate safeguards put in place is a cost-effective, simple and speedy way of settling lower value personal injury claims which will help to lead to reduced premiums.
Third, stringent regulation of Claims Management Companies (CMCs). Although the powers of the CMC regulator have recently been increased, the ABI believes more must be done to clamp down on unscrupulous CMC behaviour, including nuisance calls and the pursuit of frivolous claims.
“Continued failure to make meaningful changes to improve young driver testing and training is not only putting their lives at risk, but keeping the costs of motor insurance for young drivers unnecessarily,” said James Dalton, the ABI’s director of general insurance policy.
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