Ipswich 14th February 2012
Transport Secretary Justine Greening recently announced that with more than 1,500 claims a day, the UK is the whiplash capital of Europe and this is one of the key contributors to the rise in car insurance costs.
Driving tests have become more rigorous, and figures on road safety suggest the number of people killed and seriously injured on our roads has fallen from an annual figure of 3,450 ten years ago to 1,900 in 2012 and yet car insurance quote
prices are higher than ever before.
The combination of these things should be reducing the costs incurred by insurance companies allowing for savings to be passed on to hard pressed drivers, but there is another influential factor that is preventing this from happening.
Figures published by the ABI show that the total number of whiplash claims being made by UK drivers increased by 70% between 2005 and 2009, in fact, the 2009 figure amounted to almost 700,000 claims.
This is said to be a result of a growth in “no-win no-fee” injury claims activity by legal companies looking to profit from charges and fees. Writing in the Mail On Sunday Justine Greening commented, “From texting and cold-calling drivers involved in accidents, to running high profile advertising campaigns, lawyers are encouraging people to claim for whiplash injuries sustained in the most minor of incidents - which barely damage the car's paintwork, never mind its driver.”
She later went on to announce that the government will be holding a summit over the coming months to look at all areas of the insurance industry with a focus on motor insurance. The objective of which will be to address issues like fraud and seek solutions to the problem of car insurance inflation.
Andrew Goulborn, Commercial Director from UK car insurance
website Tiger.co.uk commented, “It is good news that this subject is on the government agenda. Any initiatives that can help to tackle fraudulent activity and therefore help to reduce the cost of car insurance for motorists is good news and will be welcomed by the industry and the UK’s honest motorists.”