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UK motor insurance premiums jump 10% to five-year high

Staff Writer |
The average price of motor insurance in Britain jumped 10% in the third quarter of the year, taking premiums to their highest level since 2012, the Association of British Insurers said.

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Premiums rose to GBP485 in the quarter, GBP45 higher than a year earlier, ABI said in a statement.

The premiums have been rising this year partly in response to new rules for personal injury claims, Reuters reported.

A government decision earlier this year to cut the personal injury discount rate - known as the Ogden rate - contributed to a increase in the size of payouts, denting insurers' profits and driving premiums to record highs.

Britain announced plans last month to change the rate for calculating personal injury payments, a move expected to cut the size of the payments.

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