Whiplash claims cost insurers £2 billion in 2011

One major motoring organisation has recently revealed that insurance claims related to whiplash have cost car insurance companies in excess of £2 billion in 2011, working out to an an additional £90 tacked on to the price of the average insurance policy.

The AA, which conducted the research into the cost of whiplash-related accident claims, said that the system is in dire need of reform.  Change ‘cannot come soon enough,’ the motoring organisation commented, exhorting the Government to work with insurers at a London motor insurance summit to take steps to reduce and eliminate false injury claims.

Measures that could be taken include encouraging insurers to challenge claims of a dubious nature and taking steps to raise the medical evidence threshold required to bring a whiplash claim.  Such claims have played a major contributory factor to what have been some of the most significant car insurance rate increases ever seen, the AA said, with the average shoparound quote for comprehensive cover increasing by almost 50 per cent.

Director of the AA’s insurance division, Simon Douglas, remarked that he had hopes that there will be a ‘tight timescale’ put in place in order to expedite any civil litigation reforms.  The system, which currently makes it all too easy for people to make claims for injuries that are either wildly exaggerated or completely nonexistent, is leading to massive costs for insurers that are only passed along to their customers, Mr Douglas added, calling for reforms that scale back the reach of personal injury and claims management firms that have also led to the proliferation of claims.

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