New figures published recently say that the extra £90 a year it costs drivers to absorb the massive costs insurers incur from paying out on whiplash leaves less cash to invest in the future as they have no choice but to slight their pensions.
Car insurance companies spent in excess of £2 billion on whiplash-related car accident claims in 2011, leading to Brits to demand the government take action to crack down on false and fraudulent claims activity. More than 90 per cent of those surveyed by a leading car insurance comparison website said they were in favour of a move by the government to raise the threshold for bringing a whiplash claim by having would-be claimants pass the muster of an independent medical review board.
Two out of three expressed approval with this measure because the so-called ‘compensation culture’ in the UK had gotten out of hand, in their opinion. An additional 37 per cent felt that the annoyance of rising car insurance rates due to whiplash claim fraud was too much to bear.
The comparison site’s spokesman, Peter Harrison, remarked that spurious whiplash injury claims on the most insignificant of accidents have played a contributory factor to a premium hike that he referred to as ‘unprecedented.’ The new government crackdown is an excellent first step for drivers who have had enough of footing the bill for fraudulent claims activity in the UK, Mr Harrison added.
The only way to save money on motor insurance currently is to shop around for the best rates or change your motoring habits, most experts say, though many have expressed concern that people could be priced out of owning a car completely if costs keep increasing.