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What is the Ogden Rate?
The Ogden Rate, or Ogden tables, are a set of statistics that are used in UK court cases. Their use is to make it easier to calculate future losses in personal injury and fatal accident cases, taking into account life expectancy and providing a range of discounted rates that correspond to it.
In March 2017 this year, the Ogden Rate was changed from 2.5 percent to -0.75 percent, prompting an outcry from insurance companies and insured drivers whose policy average increased by around £75 on average. It was expected that this would continue to rise to as high as £500 in 2018.
At long last, the insurance industry has persuaded the UK government to change the way that it calculates compensation payments to those who have accidents. Although this is likely to cut the amount of money that victims are likely to receive, it does mean that insurance premiums for drivers will decrease as well.
Why Is It Changing?
This change comes after long-standing claims from insurance industries that a lot of victims were being overcompensated for their injuries. Since 2001, the 2.5 percent rate meant that for every £1,000 awarded, the insurer would be forced to pay out £975. The decision to lower the rate was originally based on low interest rates, but after insurers argued that they’d be getting a harsh deal, draft legislation settled at -0.75 percent.
Tips To Lower Your Car Insurance Premium
There are plenty of reasons why your car insurance might be extremely high. For example, your car might have a ton of expensive modifications, or you might live in an area with a high crime rate. No one wants to pay a huge amount for their car insurance, but luckily there are a few things you can do to lower your premium regardless of where the Ogden Rate stands.
Don’t Auto-Renew
You should always make a note of the exact date that you took out your policy so that, when the time comes to renew, you can shop around for a better deal. It’s common knowledge that insurers leave the best deals for new customers.
Avoid Unnecessary Add-Ons
Sometimes your insurance will include features that you don’t really need, for example, the assurance that you’ll get a courtesy car if yours has to be repaired or insurance for driving abroad. Make sure you scrutinize the small print before you decide to go ahead and you’ll be surprised at how much you’ll save.
Add An Experienced Driver To Your Policy
Choosing an experienced driver who has a clean driving history and adding them to your policy as a secondary driver can lower your cost exponentially. Of course, you’ll have to seek their permission first and never say that they’re the primary driver when they aren’t as this could get you into legal trouble. It’s best to stick to one driver, as even more can make the cost of your policy shoot up.
Be Wary Of Your Specified Job Title
Strangely enough, the occupation that you tell your insurance providers you do will not only ensure that your cover is valid but allow you to make some decent savings on your premiums. For example, writing down that you are a “chef” rather than “kitchen staff” might mean that you’re paying an average of £98 more per year.
Shop Around
You should always use price comparison sites to find the best deal, and although this might be time-consuming, you can save a lot of money every year. Sites such as Call Wiser can help you compare quotes from some of the UK’s leading insurers and can even make it easier to find a policy that adheres to all of your requirements.