Prime Minister David Cameron has pledged to cut motor car insurance claim costs by introducing new rules to the insurance industry, as he has tired of the UK being known as Europe’s ‘whiplash capital,’ leading car insurance rates across the country to go up by an average of £90 per motorist.
Whiplash claims cost car insurance companies around £2 billion a year, according to industry estimates, and as insurers pass these costs along to their customers in the form of increased premium prices, this means that the nation’s motorists have less money to go around in an economy that’s already struggling. In an effort to demonstrate that he is doing what he can to minimise the impact of rising price inflation for the average individual in the UK, the prime minister made the promise to take steps to eliminate or reduce these costs.
In excess of 1,500 insurance claims for whiplash are made on a daily basis. This has led ministers to demand steps to be taken to not only raise the claims threshold but also to harness improvements to technological breakthroughs and medical evidence to help manage the onslaught.
According to some sources, the average driver pays around £410 a year for insurance, which represents a 17 per cent increase on last year. However, younger drivers face even higher premiums on average, with females paying £1,682 per annum while men pay an eye-watering £2,977 for the same level of cover.
Insurers are suffering under the deluge of whiplash claims, as the claims have increased by one third over the past three years, even though car accident rates have plummeted by 16 per cent.