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Whiplash Claims Behind Car Insurance Cost Rises

Whiplash Claims Behind Car Insurance Cost Rises Image

The rise in claims related to whiplash injury is primarily responsible for the rise in car insurance premiums, according to a new report by MPs. 

The House of Commons Transport Committee report is suggesting that the British government should impose a higher threshold when it comes to the payment of any compensation claims that are related to whiplash.  The MPs are also calling for the insurance industry to cease sharp practices when it comes to the managing of car accident claims.  The Transport Committee added that a cross-departmental ministerial committee should be established by the UK government in order to find a way to reduce the cost of car insurance, including extended auto warranties.

The report was launched last Thursday, with committee chairman Louise Ellman pointing out that whiplash claims were injuries "where diagnosis is often subjective" and also very expensive for insurers to try and challenge.  "Although we strongly support access to justice, drivers should not be railroaded by cold callers into launching legal action" Ellman says.  "The insurance industry must abandon sharp practices that push up premiums such as passing drivers' personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms."

The report claims that the rise of personal injury claims, the great majority were whiplash claims, was primarily responsible for the rise in insurance premiums and that the bar needed to be raised when it came to giving out compensation for such claims.

published: 16/01/2012 11:00:01

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