What is the Ogden Rate and why are my premiums going up?
What is the Ogden Rate?
The Ogden Rate, also called the ‘discount rate’ is used to calculate the level of compensation a person who suffers personal injury receives over their lifetime. It works on the principle that the compensation awarded will gain interest over time and this more significant with larger claims from more serious injuries.
Why has it changed?
The change in the discount rate is a consequence of the low interest levels in recent years resulting in a review by the Lord Chancellor. The review concluded an adjustment of rate should apply and came in to effect on 20th March 2017, reducing it from 2.5% to -0.75%.
How does this affect insurance premiums?
An example from Allianz Insurance uses a 30 year old man earning £25,000 a year suffering serious injuries and requiring care for the rest of his life. Before the reduction in the Ogden rate, the amount due from the insurer would have been calculated at £2,791,000 and after 20th March 2017, £6,325,000. This extra cost to the insurers can only be recovered by increasing premiums.
What premiums will be affected?
Premiums will increase on all policies which are affected by personal injury claims meaning an impact on millions of motor policy holders whether it’s a car, van or fleet insurance as well as other policies covering liability insurance, particularly business insurance. PricewaterhouseCoopers estimated recently that comprehensive motor insurance policies could increase by up to £75 on average but up to £1000 for young drivers.
Fleet Insurance: Big Changes In The Autumn Statement
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The fleet car and business car sector has become a regular target for change in the Autumn Statement and 2016’s was no different. In his speech, The Chancellor announced changes to the tax bands that surround fleet cars, to fleet insurance tax and to the way drivers fund their company cars. What do these changes mean for fleet and company car drivers though? In this blog, we’ll look at the ramifications of these important changes for fleet managers and fleet car drivers.
Truck and HGV Insurance Guide 2022
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10 Ways To Cut Fleet Insurance Costs
Fleet Insurance: 10 Easy Ways to Save
No one wants to pay more for their fleet insurance than they absolutely have to. Be it a large fleet, mini fleet or van fleet, being able to keep the cost of fleet insurance down can make a real difference to a fleet’s affordability. Having spent many years as an independent insurance broker specialising in fleet policies, here at Getaquoteinsurance we’ve learnt a few things about how to save on your fleet insurance quotes and so here are our 10 easy ways to save on your policy.
Electric Car Fleets - Coming Soon...?
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Will we soon see fleets of electric cars on our roads? Electric cars seem to be everywhere at the moment; in the news, in the motoring forums and finally on our streets. With major car manufacturers such as Ford, VW and Honda seemingly pinning their futures on electric cars, and with the UK predicted to have more electric car charging points by 2020 than petrol stations, the momentum behind electric cars does seem to be building. The latest sign of mass adoption came last month when Uber rolled out an electric taxi fleet in London. But will they make it into the famously conservative fleet sector?
