The growing number of whiplash claims is to blame for the inability to find discount car insurance in the UK, according to a new Government report.
The House of Commons Transport Committe’s report has found that the Government needs to impose higher thresholds for motor car insurance claims involving whiplash before payouts could be made. MPs also exhorted car insurance companies to abolish the majority of their sharp car accident claim management practices as well, and that the Government also would do well if they established a cross-departmental ministerial committee to examine ways to reduce car insurance rates for UK motorists.
Louise Ellman, the committee chairperson, remarked that insurers find it very costly to challenge whiplash claims, especially due to the subjective nature of the diagnosis. Cold callers need to stop flogging drivers into launching legal claims, Ms Ellman added, though she was quick to say that the Committee wanted to express their commitment to access to justice.
Insurers need to stop engaging in behaviour that results in premium prices rising, Ms Ellman continued, citing the example of passing along personal details of drivers involved in accidents to third parties. The committee chair was highly critical of insurers who took referral fees from entities such as car hire firms, garages, and solicitors for their customer details.
Whiplash injuries were the main factor driving premium increases, according to the report. Whiplash is difficult to diagnose in an objective manner, which has acted as a deterrent in defending these claims in a court of law, the report also said.