Report comment

Please fill in the form to report an unsuitable comment. Please state which comment is of concern and why. It will be sent to our moderator for review.

Comment

Does anyone actually remember what happened to car insurance premiums post-LASPO? No they didn't go up or stay the same - they came down. http://www.confused.com/car-insurance/price-index/overall for example.

They actually started coming down in 2012, speeded up in anticipation of LASPO, gradually slowed down - AND ONLY STARTED GOING UP AGAIN LAST YEAR as insurers would say any cost savings failed to be maintained.

So to the point of this article, if costs come down then premiums will come down. Whatever else you might think about the insurance industry (and obviously there are strong views here!) it is a very price competitive industry and if one or two companies think they can grow their book by cutting prices then they will. And the market has to follow or lose customers. In recent times the 'charge' has been led by the likes of E-Sure and Hastings both looking to float and therefore needed to show a growth story and therefore cut prices to grow.

So yes insurers will pass on savings through premiums - not because they want to necessarily but because they're operating in a very transparent market which means they have to.

Your details

Cancel