Car Insurance Service

Car Insurance - Insurers initiative to drive premiums down. Part 2

 

Summary

Recent proposals by the Association of British Insurers ( car insurance quotes ) are set to reduce the cost of car insurance. This article explains.

 

Author: Michael Challiner

Ian Crowder, a spokesman for the AA is reported as

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saying “ These new proposals will aim to take personal injury claims out of court and take lawyers out of the loop altogether, thereby cutting ( term assurance ) costs significantly. There's no doubt that the soaring costs of personal injury claims has been a significant contributor to insurance premium inflation. If they could be brought under control, premiums could be cut”.

Perhaps not surprisingly, the British Association of ( mortgage quotes ) Personal Injury Lawyers is none too keen about this proposal! Their research shows that the initial compensation offers by insurance companies are, on average, 50% of the final level of compensation agreed and 66% of defendants at first deny liability. They believe that without the legal profession, the ABI's ideas would leave the injured at the mercy of the insurers.

However, the lawyers' objections are not backed up by ( life insurance policies ) experience in Ireland. Here compensation values have remained at similar levels, but compensation is paid out at a quarter of the legal cost and three times quicker.

Roll on arbitration and lets see the insurers pass on the savings with a fall in the cost of car insurance.