Daily Motor News-Tuesday 3 December

A new personal injury discount rate of +0.5% in England and Wales 

Kennedys has welcomed the Lord Chancellor’s review which has been thorough involving meetings with stakeholders, numerous consultations and the appointment of a panel of experts. The increase in PIDR is fair in light of the current economic climate and the investment returns available. The increase from -0.25% to +0.5% and corresponding reduction in a claimant’s damages on settlement will enable public funds to be redirected to frontline services, including patient care in NHS claims. Full story

NFU Mutual publishes Code for Countryside Roads 

NFU Mutual has published a new Code for Countryside Roads to tackle the tragic and disproportionate loss of life on the UK’s rural roads. It has joined with campaign partners to launch the new Code as Department for Transport figures reveal there are 70% more deaths on rural roads than urban highways, despite there being fewer than half the number of collisions. Full story

Motorists urged to avoid falling foul of vehicle cloning scammers 

Motorists must guard against unscrupulous car cloning criminals to avoid fines and penalties for offences they’ve not committed, warns leading vehicle data and valuation specialist HPI. Criminals use cloned registration plates to avoid detection via police automated number plate recognition (ANPR) systems, which can have serious financial implications for drivers and passenger safety. Full story

Exciting new chapter begins as Warranty First secures major investment deal 

Warranty First has announced a significant buyout backed by Charles Alexander Partnership. This investment represents not just a financial milestone, but a testament to its team’s dedication to revolutionising the automotive warranty sector. Full story

Car buyers to be hit with £417 tax rise in 2025 

New car buyers will pay an extra £417 on average next year due to a rise in first-year rates for Vehicle Excise Duty (VED), a recent study has found. The increased fees mean drivers will spend an additional £162.9m if the same number of vehicles is bought in the first six months of the new tax year. Full story

Motorists could save £50 on average following compensation change, firm predicts  

The cost of motor cover could be set to fall by around £50 on average, actuaries have estimated, after a change to a key rate in England and Wales which helps to set injury compensation payouts. When victims of life-changing injuries accept lump sum compensation, the rate is applied when calculating the payout. Full story

Interest in used EVs and diesel up, new research shows 

December’s Startline Used Car Tracker shows the percentage of motorists who say that they would definitely consider an electric car as their next vehicle is up from 19% to 29%, while for diesel, it has increased from 12% to 22%. However, interest in other fuel types is relatively static, with petrol falling slightly from 49% to 47% and hybrids increasing only a little from 26% to 30%. Full story

UK used car market expected to lag behind pre-pandemic levels to 2027 

The UK used car market is projected to see only modest growth in the coming years, with transactions expected to rise from 7.4 million in 2024 to just under 7.9 million by 2027, according to the latest analysis from Cox Automotive. Baseline projections for 2025, shared in Cox Automotive’s Insight Quarterly (IQ), indicate 7,458,356 used car transactions, a marginal 0.3% increase on 2024 levels. Full story

Drivers warned that 67% of car TikTok’s are misleading, Auto Trader reveal 

Now more than ever drivers are turning to TikTok for guidance and advice for all things relating to their cars. #CarTok has become a booming niche on TikTok, with 876.4 million videos around tips and hacks, interior trends and more for your vehicle. With a growing number of #CarTok videos, the UK’s largest automotive platform, Auto Trader has analysed TikTok videos to determine whether the advice given should be followed by drivers or should be met with caution. Full story

Upcoming UN ECE Working Party on Passive Safety (GRSP) Meeting 

The 76th session of the United Nations Economic Commission for Europe Working Party on Passive Safety is scheduled to take place on 2-6 December in Geneva. Topics to be discussed at this meeting include proposed amendments to safety belt anchorages, proposed amendments to seats and head restraints to improve their whiplash performance and proposed amendments on hydrogen fuel systems. Full story

ADAC reassures EV drivers of range during winter conditions 

Many drivers of electric vehicles (EVs) – and those interested in making the switch – have a simple question about the upcoming winter: are electric cars able to cope with icy temperatures? ADAC eases their worries. With advanced technology and a few simple tips for the colder months, EV drivers will remain safely and efficiently mobile, even in winter. Full story

Consumer Alert: NHTSA encourages older drivers and their families to make a safe driving plan 

The National Highway Traffic Safety Administration encourages older drivers and their families to talk about making a safe driving plan. Older Driver Safety Awareness Week, which runs through 6 December, reminds everyone to have these conversations to help older drivers navigate changes in driving behaviours and learn about the importance of planning ahead. Full story

Best’s market segment report: US personal auto results show significant improvement 

Underwriting results in the US private passenger auto insurance segment has shown further stabilisation in first half 2024 following improvements in 2023, according to a new AM Best report. Due to the improved segment performance and other factors, AM Best has revised its outlook on the personal auto segment to stable from negative. Full story

£48m Progressive settlement resolves Michigan total loss class action lawsuit 

Progressive Marathon Insurance Company and Progressive Michigan Insurance Company have agreed to pay £48m to settle two proposed class action lawsuits that claimed the insurers illegally failed to include certain fees in total loss claim payments made to policyholders in Michigan. Full story