Blow to drivers as AA warns whiplash law will push up the price of insurance premiums
The cost of car cover is expected to start rising within months because Government changes to cut whiplash claims have failed to work as well as expected.
Over the past year, motorists have benefited from premiums plunging by as much as 19 per cent - the biggest ever recorded - says motoring body the AA.
The average premium is £888 a year - a 42 per cent drop from its peak in 2012, according to the insurer's index.
Counting the cost: Over the past year, motorists have benefited from premiums plunging by as much as 19 per cent - the biggest ever recorded - but the tide may be about to turn unless tougher measures are brought in, says motoring body the AA
Insurers started to cut prices after the Government unveiled measures to reduce fraudulent whiplash claims blamed for driving up the cost of cover.
They included banning lawyers from encouraging people to make claims and forcing people to go through strict medical assessments.
However, insurers say these measures have failed to stem the tide. The AA warns premium falls will stop by the end of this year and start to rise unless tougher measures are brought in.
Young drivers aged 17 to 22 who normally have the most expensive insurance saw the biggest falls, with nearly a quarter being shaved off the cost of their policies by the end of this year.
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