Daily Motor News-Monday 2 December

New discount rate announced 

The Lord Chancellor has announced that the new personal injury discount rate in England & Wales will increase from –0.25% to +0.5%. The change will be effective from 11 January 2025. Full story

ACSO welcomes discount rate change 

Matthew Maxwell Scott, Executive Director of the Association of Consumer Support Organisations (ACSO), said, “The Lord Chancellor has sensibly erred on the side of caution and in doing so makes it less likely that the 100% Compensation Principle will be broken. In resisting siren voices calling for a much higher rate, she has done the right thing by seriously injured people while also ensuring that costs to compensators are kept under control.” Full story

Stellantis boss abruptly quits in boardroom clash 

The boss of car making giant Stellantis, Carlos Tavares, has quit with immediate effect following a boardroom clash. His abrupt exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – comes two months after Stellantis issued a profit warning. Full story

Aviva purchase of Direct Line ‘to push up prices’ 

Millions of customers face paying more for their car and home insurance if Aviva succeeds in buying rival Direct Line, a consumer campaigner has warned. Aviva stunned the city with a £3.3bn offer, but experts such as James Daley, of consumer campaign group Fairer Finance, are concerned the takeover will reduce competition and lead to even higher insurance premiums, which have rocketed in recent years. Full story

Reduction in road casualties in last 12 months – but ‘concerning’ statistics for e-scooters 

Department for Transport figures have revealed a decrease in the number of road casualites, but the RAC has warned of concerning statistics around e-scooters. RAC road safety spokesperson Rod Dennis said, “It’s very concerning to see that there were 1,194 casualties and six deaths among e-scooter riders. While collisions involving e-scooters dropped this year from 1,413 in 2023, it’s important to realise these are statistics that didn’t exist a few years ago when there were no e-scooters on the roads.” Full story

Drivers are in the dark on car data collection 

The question of data privacy is something that insurance brands need to be aware of, as a reputational risk, and as a benefit in terms of customer service. Knowing your customer is of course an FCA duty, but passing on too much info to third parties can lead to complaints. It’s a fine line. Many modern cars can collect and transmit data about the driver to external parties using integrated internet connection and technology – but are car owners aware that they can do so? Full story

Warning to North East motorists as Northumbria Police seize 95 uninsured vehicles 

Almost 100 uninsured vehicles have been seized by police as part of a clampdown on uninsured drivers. Northumbria Police’s specialist team dedicated to road safety, Op Dragoon, part of Northumbria Police’s Roads Policing unit, supported activity organised by the National Police Chief’s Council (NPCC) by teaming up with the Motor Insurers’ Bureau (MIB) for the latest crackdown on uninsured drivers. Full story

IAM RoadSmart responds to the latest reported road casualties in Great Britain in 2024 

IAM RoadSmart Director of Policy and Standards Nicholas Lyes said, “Provisionally, the number of fatalities on our roads remains stubbornly high and underlines the importance of the government’s commitment to an updated road safety strategy. Of particular concern appears to be an alarming spike in the number of young women killed in the past 12 months.” Full story

EV transition needs policy overhaul amid struggles to compete with China 

David Bailey, professor of business economics at Birmingham Business School is calling for a comprehensive overhaul of UK policy, including incentives, infrastructure development and a clear industrial strategy to address domestic production woes and accelerate the EV transition. Full story

The worst time of day to buy car insurance 

Around 8.7 million people, or 27% of the workforce, are night-time workers – who don’t follow the 9-5 routine, according to the Office for National Statistics. But if you tend to do certain ‘life admin’ tasks – such as shopping for car insurance – at odd hours, there’s a chance you could be paying a hefty penalty. Full story

DfI announces return of road safety campaigns 

The Department for Infrastructure has announced a renewed collaboration with the Northern Ireland Road Safety Partnership (NIRSP) to promote two road safety campaigns. The collaboration launched a new road safety public information campaign highlighting the dangers of careless driving in December last year, followed by the established anti-speeding campaign ‘Classroom’ in January 2024. Full story

Push to remove EV insurance tax gathers momentum 

Paul Baxter, CEO of The Green Insurer, has called for the UK government to consider scrapping or reducing the 12% Insurance Premium Tax (IPT) on car insurance for electric vehicles (EVs) as a measure to encourage wider adoption of environmentally friendly vehicles. Full story

Increased emissions and fleet strain are ‘hidden costs’ of Black Friday 

Geotab has reviewed data taken from over four million connected vehicle subscriptions during the most intense retail periods of the year, from Black Friday through to Boxing Day, across 2020 to 2023. Its Driving the Last Mile report shows a spike in the real-world use of LCVs. Notably, a vehicle makes on average 11% more trips during Black Friday week and 9% more during Christmas. Full story

iVendi forms strategic partnership with Close Brothers 

iVendi and Close Brothers Motor Finance have formed a new partnership to make it easier for dealers to offer consumers motor finance, and enhance their operational processes and buyer experience while meeting Consumer Duty demands. iVendi’s Connected Retailing platform will deliver key motor finance tools, including a “plug-in” end to end, online motor finance solution for dealer websites and a full showroom point of sale system. Full story