Wednesday 24th May 2017
What effect could the general election have on car insurance premiums?
The Conservatives have launched their 2017 election manifesto and among the headline-grabbing measures, there was a commitment to ban companies who cold call the public to encourage them to make claims for personal injury. As well as a commitment to reduce insurance costs for motorists by cracking down on fraudulent whiplash claims.
The public faces a daily barrage of calls from claims touts, but banning companies isn’t easy. Many are registered abroad, and the technology they use to make millions of calls or texts every day can be based anywhere in the world. Also, companies that are closed down often pop up again under another name, and carry on where they left off.
Turning to the promise to crack down on fraudulent whiplash claims, there is a balance to be struck between stopping fraudsters but also making sure genuinely injured people still get the compensation they need for their injuries.
Whiplash can be painful and lead to problems with sleeping, working or looking after the family, and in the UK, laws which have existed for centuries say that a person who injured through no fault of their own has the right to be compensated by the other party for that loss.
Car and van insurance prices have been going up in the last few months, and while Commercial Vehicle Direct is determined to keep the prices we charge competitive, the government’s decision to increase insurance tax (IPT) to 12% has also raised premiums and means that, every time a customer buys an insurance policy, 12% of the price goes to the Treasury.
Those who typically pay the most for their insurance, such as young drivers or older people, will have proportionally the most tax to pay.
We’ll continue to keep an eye on what the all parties say about insurance in the run up to the General Election.