Increases in Motor Insurance Costs explained
The Government’s recent announcement that the Ogden discount rate is to be slashed from +2.5% to -0.75% has sent headlines (such as this from the BBC) – and insurers into a frenzy. But what does it actually mean?
The Ogden Table is the way in which motor insurance bodily injury and fatality claims are settled – and the result of these changes could mean that motor insurance policies are potentially likely to increase.
The Ogden Table is a discount table implemented by the Government to help offset the costs of such claims. The insurance team at FOCUS believe that the implications of this could mean that the average motor insurance policy could increase by 10-15%.
Additional factors which could affect renewal premiums is a record high number in new vehicles being purchased – and such vehicles having enhanced specifications as standard, such as parking sensors and cameras. This has meant that “minor claims” such as bumper replacements are now more costly due to the high level of technology aimed at not only enhancing your driving experience but also making the roads safer.
Please be reassured that the motor insurance team at FOCUS will continue to proactively research the market and provide our usual high levels of personalised customer service, to ensure that we continue to achieve the best value for money in terms of your motor insurance policy – not just the cost but also the level of cover and, importantly, how an insurance company will perform in the event that you have to make a claim.
To read our News Brief on the Negative Discount Rate, click here – or for more information, do not hesitate to get in touch.-
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