Context
The ABI has unveiled a series of steps the industry is taking to combat the rising costs of motor cover. In collaboration with its Consumer Advisory Group, the ABI will commission research into the feasibility and impact of various social policies focused on helping low-income households manage their insurance costs. Alongside this, it has published a roadmap outlining 10 concrete steps aimed at tackling insurance costs for all drivers.
Key points to note and next actions
The ABI’s 10-Point Roadmap to tackling insurance costs:
- Help consumers make informed decisions – the industry will do more on transparency around which vehicles are more costly to insure.
- Combat vehicle theft – the ABI is working with vehicle manufacturers, the Mayor of London’s office, and the National Police Chiefs’ Council.
- Tackle fraud and uninsured driving – continuing to crack down on fraud and uninsured driving will reduce the costs borne by law-abiding drivers.
- Improve road safety and road infrastructure – through campaigns, modern safety measures and road improvement.
- Support new and novice drivers – the phased approach of graduated driving licenses has been proven to improve safety.
- Reduce the impact of the Personal Injury Discount Rate (PIDR) – rethink the rate for large, severe injury compensation, as this impacts premiums.
- Continue whiplash reform – reform principles enacted for whiplash should be applied to similar injuries.
- Advocate for safety-focused vehicle technology – making assisted safety features mandatory in new cars would contribute to improved road safety.
- Lower Insurance Premium Tax (IPT) – IPT adds £67 to the average policy. It’s getting worse as prices rise. It punishes responsible choices.
- Support the repair sector – Work with government, vehicle manufacturers and independent mechanics to create a robust repair sector.