£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

Pay-per-mile road pricing no longer politically toxic, study suggests
Motorway
News

Pay-per-mile road pricing no longer politically toxic, study suggests

The Social Market Foundation says fuel duty unfairness opens the door for road pricing schemes
15 Oct 2021
Transport secretary Grant Shapps confirms digital driving licences are on the way
Digital driving licence
Consumer news

Transport secretary Grant Shapps confirms digital driving licences are on the way

DVLA plans to offer a digital provisional driving licence by 2024, with full digital licences to follow at a later date
17 Sep 2021
Electric car charge points to be installed in every new home in the UK
Home charging point
News

Electric car charge points to be installed in every new home in the UK

England will be the first country in the world to introduce mandatory electric car charging points for new-build homes
10 Sep 2021
Government asks for more Smart Motorway safety data with revised Highway Code on the way
smart motorway
News

Government asks for more Smart Motorway safety data with revised Highway Code on the way

A revised version of the Highway Code will cover Smart Motorway driving, as National Highways pledges to improve data and monitoring
8 Sep 2021

Most Popular

New 2022 Range Rover leaks: first look at new Land Rover flagship SUV
Range Rover leak - front
Land Rover Range Rover

New 2022 Range Rover leaks: first look at new Land Rover flagship SUV

Images of what could be the next Range Rover have appeared on social media ahead of next week’s reveal
21 Oct 2021
New Kia EV6 2021 review
Kia EV6 front tracking
Kia EV6

New Kia EV6 2021 review

With a sporty drive, 300-plus miles of range and plenty of tech - could the new Kia EV6 be one of the best electric cars on sale?
19 Oct 2021
Cupra Born vs Mercedes EQA vs Volvo C40 Recharge: 2021 group test review
Cupra Born vs Mercedes EQA vs Volvo C40 Recharge
Car group tests

Cupra Born vs Mercedes EQA vs Volvo C40 Recharge: 2021 group test review

The all-electric Volvo C40 Recharge meets another premium wannabe in the Cupra Born. But can they beat the super-posh new Mercedes EQA?
19 Oct 2021