Autumn Statement 2015 Motoring Insurance Savings

Autumn Statement Insurance Savings

Motorists could be in for savings on their insurance bills with the government are working with insurance firms to bring a long awaited reform to the way minor accidents and compensation are dealt with through legislation.

Determined to crack down on our fraud and compensation culture around minor injuries. With the average whiplash compensation totalling an average of £90 to motoring insurance with a total of £2 billion for the country. It’s easy to see where with a little legislation and a little common sense the potential for saving the country money is massive.

The new legislation will end the circle in which the responsible motorists of the roads pay higher insurance premiums to cover the false and fraudulent compensation payments made to those that are exploiting the system. This will result in an average save of £40 to £50 per policy.

This ironically comes just weeks after the Government increased the Insurance Premium Tax or IPT. From 6 per cent to 9.5 per cent from November 1^st. This means that every insurance policy taken out not just for motor insurance has this 3.5 per cent hike.