Advertisement

Whiplash crackdown will save drivers £35 a year on insurance

The Government has announced it will ban claims without medical evidence and introduce a cap on insurance payouts

Whiplash injury insurance claims

The Government is introducing new rules to stem the rising cost of car insurance by clamping down on fraudulent whiplash claims.

In today’s parliamentary opening speech the Queen said: “Legislation will be introduced to modernise the court system and to help reduce motor insurance premiums.”

• Best car insurance companies 2017

Advertisement - Article continues below

A new Civil Liability Bill will save motorists an estimated £35 a year and includes a ban on drivers making claims without medical evidence and a fixed tariff of compensation for whiplash injuries with a duration of up to two years.

Claims for whiplash injuries after car crashes have risen 50 per cent in the last decade with premiums jumping an average £110 in the last year alone.

The Government launched a consultation on the bill in November 2016 with proposals to “reduce the unacceptably high number of whiplash claims and allow insurers to cut premiums”. The consultation proposed a compensation cap of £425, with the average payout currently £1,850.

The consultation also set out to raise the limit for compensation in the small claims court for all personal injury claims from £1,000 to £5,000 but it’s not yet clear whether this will be included in the Civil Liability Bill.

When the consultation was launched the then-Justice Secretary Liz Truss said: “For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists.

“These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country’s drivers.”

Do you think these mesures will curb the problem of wiplash claims? Let us know in the comments...

Advertisement
Advertisement

Recommended

Deaths on UK’s major road network reach eight-year high
Car crash, insurance, write-off, accident
Consumer news

Deaths on UK’s major road network reach eight-year high

Official figures reveal an increase in fatalities on Strategic Road Network, with collisions costing over £1 billion in a year
7 Jul 2020
VED road tax: how much does it cost?
car tax calculator
Consumer news

VED road tax: how much does it cost?

Confused by VED road tax? Our comprehensive guide explains how much you'll pay on your next car
3 Jul 2020
Six-month MoT extension ends on 1 August
Consumer news

Six-month MoT extension ends on 1 August

Department for Transport ends MoT extension on 1 August; cars due an MoT before that date still get extra six months
29 Jun 2020
BMW and Mercedes pause autonomous car partnership
BMW and Mercedes
BMW

BMW and Mercedes pause autonomous car partnership

German firms had previously agreed to work together on Level 4 self-driving systems, plans that have been paused following a "mutual and amicable agre…
19 Jun 2020

Most Popular

SEAT Leon vs Volkswagen Golf vs Ford Focus
Family hatchbacks

SEAT Leon vs Volkswagen Golf vs Ford Focus

The Ford Focus, Volkswagen Golf and SEAT Leon are all long established hatchbacks - we find out which is best among the latest crop
11 Jul 2020
New Skoda Octavia vRS 2020 ride review
Skoda Octavia vRS Hatchback

New Skoda Octavia vRS 2020 ride review

We get our first taste of 242bhp Skoda Octavia vRS with Skoda tech development boss Christian Strube in the driver’s seat
10 Jul 2020
New Peugeot 3008 could morph into a coupe-SUV in 2022
Peugeot 3008

New Peugeot 3008 could morph into a coupe-SUV in 2022

Peugeot’s next-generation 3008 looks set to receive a radical redesign in two years’ time, evolving into a style-focussed coupe-SUV
13 Jul 2020