Accident claims cost £2b a year – can you believe it?

You might find it hard to believe, but whiplash-related car accident claims cost insurance providers around £2 billion on an annual basis, according to the AA – and drivers are footing the bill to the tune of around 90 extra pounds a year on their insurance premiums.

Change simply can’t come soon enough, according to the motoring organisation, a sentiment that has been echoed by anyone receiving their renewal paperwork in the post and seeing yet another rate increase.  Ministers have been working overtime with the insurance industry to find ways to minimise the impact of whiplash claims, especially false ones that have proliferated due to the number of claims management companies that have sprung up like wildfire across the country.

Insurers have traditionally run into serious trouble in challenging dubious claims because of low medical evidence thresholds.  However, new measures discussed by the Government could bring higher thresholds, which will reduce the amount of claims that make it through the initial screening process.

The last two years have seen whiplash-related claims become the major contributor to the massive insurance premium price increases we’ve all been labouring under, according to the AA.  The average shop-around comprehensive quote has gone up by an eye-watering 50 per cent, the motoring organisation said, with AA Insurance’s Simon Douglas stating that he hopes the new measures will be put into effect sooner rather than later, especially as the current system encourages individuals to make spurious claims regardless of the seriousness of their injuries.

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