press release

New personal injury discount rate risks pricing younger and older drivers off the road

Commenting on today’s decision by the Ministry of Justice to reduce the personal injury discount rate, Steve Treloar, Managing Director of General Insurance at LV= said; “Today’s announcement risks pricing younger and older drivers off the road. The change to the discount rate will significantly increase the cost of the largest personal injury claims and disproportionately hit the premiums of those most likely to cause them – younger and older drivers.

“At a time when car insurance costs are rising anyway as result of fraudulent whiplash claims and successive increases to Insurance Premium Tax, this will hit drivers’ already squeezed wallets hard.

“We absolutely believe that people who are seriously injured should be properly compensated but the method used by the Ministry of Justice to set the discount rate is obsolete and in need of reform. We urge the Ministry to work with all parties to agree a fair way forward.”

About LV=

LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We are currently the UK's number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

Press contact

Lloyd Purnell
Senior Press Officer (General Insurance)
020 7634 4433
07500 835 885