Government continues to examine car insurance rates

The Government continues to examine high car insurance rates as cabinet ministers prepare to address ways to reduce the rampant increase in motor car insurance claims for whiplash-related injuries, experts say.

A special summit is scheduled in order to discuss the issue, with Business Secretary Vince Cable, Home Secretary Theresa May, Justice Secretary Ken Clarke, Health Secretary Andrew Lansley, and Transport Secretary Justine Greening to be in attendance.  The summit comes on the heels of the Transport Select Committee’s recent report that found that the lack of discount car insurance in the UK can be blamed in large part to the high number of whiplash claims in the UK in comparison to the rest of Europe.

Ms Greening recently said that car insurance costs are not reflecting real-world motoring conditions as accident rates have plummeted as drivers are more responsible behind the wheel than they have been in years.  The reasonable expectation would be for premium prices to either hold steady or even decline, yet the cost of motoring has been climbing relentlessly, the Transport Secretary also said.

Official figures have seen the UK crowned with the dubious honour of being the whiplash capital of the entire eurozone, as more than 1,500 whiplash-related claims are made on a daily basis.  However, a large number of these claims are either grossly exaggerated or wholly fabricated, Ms Greening suggested, as ambulance chasing lawyers attempt to drive claims figures.

The Transport Secretary concluded by stating that it was high time that these issues were confronted, adding that she has made the determination to make a serious attempt at rectifying the situation.

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