£500m savings in whiplash car insurance claims not passed to motorists

‘Profiteering’ allegation denied, but insurers save £520m while premiums are hiked by 20 percent

Whiplash injury insurance claims

Drivers are not feeling the promised benefits of Government actions to deter fake whiplash car insurance claims, even though the mesures have saved the insurance industry a whopping £520million.

The government acted following a review in 2012, when insurers complained that spiraling numbers of whiplash claims were adding £90 to every motorist’s annual insurance policy.

Best car insurance comparison sites

Measures adopted by the Government made whiplash injuries much less rewarding to claim for, and acted to stop lawyers ‘ambulance chasing’ through referrals. The result has been a 23,000 reduction in whiplash claims over a three-year period, which has netted the insurance industry a saving of more than half a billion pounds.

When the industry made its plea for government action, it also pledged to pass savings onto consumers. In contrast, there’s evidence to suggest insurance policy costs are soaring – indeed Confused.com reckons policies have risen nearly 20 percent in the last 12 months.

The Times has reported reaction from Louise Ellman, who chairs the Transport Select Committee in the House of Commons. “The bottom line is that the insurance industry promised that they would reduce premiums as whiplash claims fell, and if they haven’t done it, they’ve reneged on their promise.

“Fraud must be wiped out but the insurance industry must also honour its promises,” she told the newspaper.

• UK car recalls: everything you need to know

The Telegraph newspaper reports comments from the Association of British Insurers defending the industry. The ABI’s general insurance manager Rob Cummings denies profiteering, and says insurers had initially passed savings of £1.1billion to motorists following the introduction of the government measures, and were now trying to recoup some of the cash.

Can motorists trust comparison sites? Find out here...

Recommended

Treasury eyes up road pricing to plug £30bn fuel-duty gap
News

Treasury eyes up road pricing to plug £30bn fuel-duty gap

The UK’s Petrol and diesel car ban will bring with it huge losses for the Treasury as fuel-duty revenue dries up; road pricing looks set to be the sol…
17 Nov 2020
Road bosses approve 138 miles of new smart motorway with no hard shoulder
smart motorway
News

Road bosses approve 138 miles of new smart motorway with no hard shoulder

Nine new sections of all-lane running smart motorway are set to open despite concerns over the lack of a hard shoulder
9 Nov 2020
Fiat-Chrysler faces £5bn UK lawsuit over defeat devices
Fiat Doblo 2015 - steering wheel
Fiat

Fiat-Chrysler faces £5bn UK lawsuit over defeat devices

Around half a million FCA-engined vehicles in England and Wales could be affected by diesel emissions scandal, says law firm
27 Oct 2020
Dash cam portal saves 170,000 hours of police time in two years
News

Dash cam portal saves 170,000 hours of police time in two years

Nextbase's National Dash Cam Safety Portal is used by 33 police forces and has recorded more than 20,000 uploads
21 Oct 2020

Most Popular

New Suzuki Swace estate launched on UK market
News

New Suzuki Swace estate launched on UK market

Based on the Toyota Corolla Touring Sports, the Suzuki Swace estate comes to the UK
11 Nov 2020
All-new Renault Kangoo van unveiled ahead of 2021 launch
Renault Kangoo ZE Concept - show pic
Renault Kangoo

All-new Renault Kangoo van unveiled ahead of 2021 launch

First images of the third-generation Renault Kangoo panel van - which will soon square-up to the new Volkswagen Caddy
12 Nov 2020
How to transfer a number plate from one car to another
MINI number plate change
Tips & advice

How to transfer a number plate from one car to another

Need to know how to transfer a number plate between vehicles? Our step-by-step guide breaks it down
22 Nov 2020