There was an increase in premium tax last year, that and an amendment to the Ogden rate, which mean insurers had to Increase their reserves, Insurers have strongly petitioned the Government over whiplash claims in an attempt to deny lawful claimants, while advising the potential savings (initially quoted by Aviva insurance to George Osbourne the then current Chancellor savings of £95 per policy) this then changed, to £75,then £45, now the massive saving of £25 per policy. All the while trying to push reforms through via the criminal justice bill which would potentially save them billions in personal injury claims by increasing the PI claims limit to £5000 (this means you will only be able to use a solicitor for claims over this amount).

This means you would have to represent yourself in court and would ultimately end up receiving £600 for a whiplash injury compared to £1600-2000. This leads to your question, as insurers should be passing these savings on to honest members of the public. And yet they never have, probably never will. Despite the fact they had one of the best underwriting years ever making more profit than they have done. What is the justification for premiums to increase? There isn't one.