Claiming that he wants to lower car insurance rates for a nation of harried drivers, David Cameron met with insurance industry leaders at a recent Downing Street summit to find ways to reduce the number of expensive injury claims that drive up the cost of motor car insurance.
One of the most expensive types of accident claims, according to research conducted by car insurance companies, is the whiplash accident claim, which has experienced a surge in popularity that has led to massive payout increases even as accident rates have declined. Insurers find it difficult to dispute whiplash claims due to a very low threshold set for medical evidence, which results in many insurance companies paying massive payouts, incurring costs that need to be passed along to motorists in the form of higher premium prices.
Justine Greening, the transport secretary, has said that insurance costs are falling more and more out of step with reality, as accident rates truly are going down and motorist behaviour has been trending towards responsibility rather than recklessness. Ms Greening, who also attended the summit, wants this disparity to be addressed as thoroughly as possible in order to give relief to suffering motorists.
The insurance industry incurs around £2 billion every year in whiplash claims related costs, according to the Association of British Insurers. This works out to around 1,500 whiplash claims being made in the UK every day, and results in the average motorist seeing their premiums increase by £90 to recover the costs.
The ABI’s figures also said that these costs have aided in driving average insurance prices 17 per cent higher to £410, though younger motorists pay anywhere from four to seven times this amount, dependent on gender and driving experience.