ABI: Car insurance provides value for money

Posted :12-05-2005

The Association of British Insurers (ABI) has defended the industry against claims that insurance premiums are unnecessarily high.

An RAC survey, released yesterday, outlined that motorists are going to great lengths to minimise insurance costs, with one in ten lying on insurance applications and nine per cent driving without insurance.

Speaking to BBC Radio Five Live, ABI spokesman Malcolm Tarling reacted to claims that insurance premiums are over-priced, stating: "We're not persecuting the ordinary driver. We're in business to insure people.

"Of course we're in business to make money because if we don't make money we can't pay claims. We're also in business to provide a competitive service."

Mr Tarling stated that insurers make 'very little' from car insurance annually and underlined the current competitiveness of the industry stating that the average comprehensive car insurance premium has dropped by four per cent of the past 12 months.

© DeHavilland Information Services plc

The views expressed within the article are entirely those of Adfero Ltd and are not those of BDML Connect Ltd