SIMI protests at cost of cover
According to SIMI, a new MIAB is essential to halt the surge in the cost of insurance premiums which have risen by more than 70% since 2013.
SIMI yesterday issued the car sales figures for the month of September which saw 162 registrations decrease by 1.4% (4,698) compared to September 2015 (4,766). However, total new car registrations in the year to date are up 18% (143,205) on the same period last year (120,961).
SIMI director general Alan Nolan said that despite the continuing reduction in the overall cost of motoring, the significant increase in the cost of motor insurance premiums for consumers and for businesses must now be a serious concern.
“Since 2013 motor insurance premiums have increased by 71.3% and in the past 12 months alone, increases have been running at 38.6%. With further significant increases in premiums predicted, this will continue to unfairly burden motorists and businesses, and is a particularly serious issue in the case of younger drivers and those on lower incomes.
“Our experience of previous periods of high insurance costs suggests that car maintenance will reduce, increasing the risk of accidents and the incidence of uninsured driving is also likely to increase. In the past when we had similar problems the establishment of the Motor Insurance Advisory Board (MIAB) and its recommendations (2003) delivered significant reductions and improved the level of transparency in relation to the factors contributing to insurance costs. SIMI is calling for the re-establishment of the MIAB as a matter of urgency. Recent reviews of insurance costs in the UK has seen their motor insurance premiums fall to levels lower than three years ago.”
Mr Nolan also warned the Government against introducing any measure in next week’s budget that would have a negative impact on the sector.
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