1bn Saved On Accident Claims and Whiplash Claims
We often talk about the rise in false accident claims, but for the first time, insurers are beginning to win the battle against ‘suspect’ whiplash claims.
The reduced number of whiplash claims has saved insurance companies over a billion pounds – savings which are yet to be passed on to consumers.
The Government’s Compensation Unit has put together figures that show 50% of accident claims made refer to motor related incidents. Statistics also show that the average value of a claim has reduced by £124 to £10,600.
The industry has been threatening to get tough on whiplash claims for a while and it now seems they are starting to make progress. Whiplash is the the term used used for damage to the soft tissue around the neck or back after an accident. One in nine whiplash claims are said to be ‘suspect’ with bogus claims adding an estimated £50 to your already hefty car insurance premium.
Speaking to drivers it’s clear that premiums have not reduced and in fact have continued to rise steadily for the past 5 years. Insurers now look to blame other factors after previously attributing rises to the number of false accident claims made. It seems the rising cost of dealer repairs and insurance premium tax are the new ‘culprits’ to your rising premiums.
Our consumer champion Holly Paley reiterates her frustration at the latest developments. “The disappointing thing is that consumers have always been told that the number of accident claims made has an impact on the premiums they paid. This data from the Government Compensation Unit doesn’t reflect that claim. If premiums rise as a result of an increase in whiplash claims than surely they should be reducing on the back of a reported 6 percent drop. I don’t personally buy the excuses coming from insurers that other factors are now attributing. We need clear guidance and advice to drivers so that we can all come together in a bid to save. The concern is that if we don’t start to pass on these savings to drivers than we will end up back where we started ,with a rising number of ‘suspect’ whiplash claims”.
If you have been genuinely affected by whiplash than speak to the Accident Claims team for no obligation advice.