Home United Kingdom Car insurance prices fall as whiplash injury claims are curbed

Car insurance prices fall as whiplash injury claims are curbed


Car insurance prices have fallen for the first time in three years, partly thanks to plans to crack down on claims for whiplash injuries.

Premiums have dropped by an average of 7 per cent or 59 in the first three months of the year, according to research by Confused.com. Prices fell2 per cent or 13 – in 12 months afterrising in the last quarter last year.

The insurance portal said a government bill to curb the number and cost of whiplash claims was already leaving drivers better off.

Men are now paying an average of 810 for cover, and women 715, the survey showed.

Last month thejustice secretary, David Gauke, unveiled plans to set a cap on whiplash claims and force claimants to provide medical evidence.

It is believed thatexaggerated and fraudulent claims and compensation culture cost ordinary motorists at least 1bn a year.

Mr Gauke said the government wanted to ensure whiplash claims were no longer an easy payday.

The number of whiplash claims has been too high for too long, and is symptomatic of a wider compensation culture, he said.

Bogus claims uncovered by the industry include:

Ministers last month also proposed changes to the way personal injury payouts are calculated following serious injuries the so-called Ogden rate. Insurerssaid although the reform will not take effect until next April, it was also already contributing to plunging premiums.

The websites survey stated: Insurers seem to have softened prices as the Government has announced a review of the Ogden Rate discount, expected in April 2019, which could mean insurers pay out less when drivers make a claim.

“The government has also announced a reform to the way whiplash claims are calculated and paid which may have also had an impact.

It added: However, the average comprehensive car insurance policy is still an eye-watering 768. And research reveals customers who renew with the same insurer are not benefiting from these savings.



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