The Ministry of Justice has decided to reduce the discount rate used in calculations for compensation payments for those who suffer long-term injuries, and the net result could well be higher insurance premiums for drivers.
Matt Oliver from Gocompare.com Car Insurance, commented: “First IPT increases and now this! Drivers are being hit with news about rising costs left, right and centre at the moment. In terms of their insurance, there are likely to be only two things that motorists need to understand – car insurance premiums are going up this year and the only way to be sure you get the best price possible for your specific circumstances is to shop around when your renewal comes through.
“In general, we are expecting car insurance prices to continue rising this year, but different insurers will always take a slightly different view of you and your car, when it comes to insurance risk. Therefore, when prices are rising, it is more important than ever not to accept the premium your current insurer is offering, but check to see if you can get a better deal elsewhere. The savings from shopping around this year could be significant and drivers need to give themselves enough time at renewal to do a proper job, rather than just letting their insurer role them over for another year.”
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