Motor insurance set to fall as firms pledge to end Britain’s staggering £2bn bill for whiplash injury claims

By
Sean Poulter, Consumer Affairs Editor

Last updated at 11:40 PM on 14th February 2012

Insurers last night pledged to cut motor premiums on the back of a Government bid to tackle the compensation culture that has made Britain the whiplash capital of Europe.

Claims for whiplash injuries are running at £2billion a year and adding £90 to every driver’s motor insurance policy.

David Cameron yesterday held talks with the insurance industry to discuss measures to crack down on bogus motor insurance claims.

Good to talk: David Cameron hosts a meeting of insurance company bosses including from left, Trevor Matthews of Aviva, Oliver Letwin and Ann Robinson of Uswitch

Good to talk: David Cameron hosts a meeting of insurance company bosses including from left, Trevor Matthews of Aviva, Oliver Letwin and Ann Robinson of Uswitch

Ministers are to investigate ways to reduce the staggering number of whiplash claims that are currently running at 1,500 a day.

This figure has leapt 30 per cent in the past three years and has been driven up by ambulance-chasing lawyers.

One possibility is a ban on claims for whiplash injuries in low speed collisions.

Measures to require independent medical evidence to back up any claim for compensation covering injury and loss of income are also expected.

Ministers also want insurers to get tough on the issue and challenge suspect claimants in the courts.

The crackdown is part of a wider package involving government and the insurance industry to reduce accident pay-outs and so cut premiums.

The average motor insurance bill is up 17 per cent in a year to £410, so adding to the biggest cost of living squeeze in at least 60 years.

However, young drivers are effectively being priced off the road with an average premium of £2,977 for a young male and £1,682 for a young female.

Compensation culture: Whiplash claims have gone up 30 per cent in the past three years (file picture)

Compensation culture: Whiplash claims have gone up 30 per cent in the past three years (file picture)

Other proposals include a ban on referral fees paid by lawyers to get details of those involved in accidents. There is also a commitment to cut the £1,200 fee that lawyers can charge to pursue small personal injury claims.

Ministers and insurance firms are also looking at radical measures to bring down insurance premiums for young drivers.

These include a probationary period for newly qualified drivers that will ban them from getting behind the wheel unless they are accompanied by an experienced driver aged at least 25.

Insurers are also being encouraged to support the introduction of black box technology into cars for young drivers as a way of reducing premiums.

Lower premiums could be offered to those who keep to speed limits or accept a curfew that stops them from using their car at night.

Once young drivers have created an accident free driving record, they would apply for motor insurance on much more reasonable terms.

Following the meeting with the Association of British Insurers (ABI) and other industry leaders, Mr Cameron said: ‘I am determined to tackle this damaging compensation culture which has been pushing up premiums.’

Transport Secretary, Justine Greening, suggested lawyers are encouraging people to make unfounded claims.

‘I think too often they’re encouraged to make a claim for compensation for some kind of health issue, she said.

‘When you look at the statistics, you see that, over the past three years alone, the number of whiplash claims has gone up by 30 per cent. Something is not right.’

The ABI’s director general, Otto Thoresen, said: ‘The cost of motor insurance reflects our society where it is all too easy to make spurious and exaggerated personal injury claims, where excessive legal costs can outstrip compensation awards and that tolerates the high levels of deaths and serious injuries involving young drivers and their passengers.

‘Urgent action is needed to tackle the surge in whiplash claims which now cost insurers £2billion a year and push up premiums for all motorists.

‘Tackling these issues will bring down motor premiums.’

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it wont work. As soon as the new rules are published, the laywers will find a way around them, thats what they do!

Coming to a Jobcentre near you soon. Applicants needed to perform the task of walking in front of motorised vehicles carrying an EU flag on behalf of a range of insurers. The right candidate must be able to ensure that their walking pace will not exceed 4mph. In line with ConDem moves to scrap or reduce pension rights increase the retirement age, this dynamic position will accept applicants who have a Zimmer frame that meets EU speed test limits could be adapted to operate on the left or right side of the road as long as the walker remains visible to the driver. Minimum wage guaranteed but the insurers use a bonus scheme for vehicle walkers to claim top up benefits from the state as insurers don’t like paying money out to anyone.

“Motor insurance set to fall”.__________Yeah right. I’ll believe it when I see it – after those flying pigs have disappeared. Nothing EVER falls in price in this country, that’s why it’s called “Rip-Off Britain”.

young drivers are effectively being priced off the road with an average premium of £2,977 for a young male and £1,682 for a young female……… These young people also claim for whiplash at any opportunity, so you can not have it all ways can you.

I did a double take when I read the headline. My lawyers have been informed.

Stop the no win no fee lawyers and ban lawyers from advertising that service and you’ll see a huge drop in claims.

I drive A 1987 registered BMW 3 Series worth £450 and the cheapest car insurance I can get at 41 years of age is £370 per year with full no Claims the policy gives me no Cover for any Financial Loss in respect of the Car as I also get the priviledge of paying a £200 excess.
It is blatent theft by the insurance companies that makes me pay out with no security for my vehicle and this is a Comprehensive Policy.

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