Insurance Premium Tax goes up in January, which will add a further 1 per cent to the generally upward trend in the cost of insurance.
Traditionally, the first quarter of the year tends to show little premium movement when it comes to motor insurance. Indeed, in 2010 they fell slightly, but very quickly resumed their upward climb. But I think we can expect to see premiums continue to go up in the first quarter of 2011. The premium increases of the past year have helped to correct reserves but the problems of fraud and claims inflation remain.
It really is important that the government finds ways to control the growing compensation culture in the UK, and I hope that before the end of the year some positive measures to do so will have been put in place.
Lord Justice Jackson’s recommendations on combating civil litigation costs and controlling “no-win, no-fee” ambulance chasing lawyers are welcome and should both curb those annoying text messages urging us to claim for accident injury we may or may not have suffered and limit the associated legal costs.
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