Compensation Culture Makes Car Insurance More Expensive

It seems that drivers are paying for the “compensation culture” we have in the UK, with £2.5 billion being added to insurance premiums.

This is all revealed in a new report by a leading car insurance company, who say that the average car owner has to pay £93 a year more because of so called personal injury lawyers and claim companies who are trying to cash in long after accidents have happened.

Don’t get me started on this, because if there is one thing that really annoys me it is the “something for nothing” crowd we seem to always be hearing about.

So how does all this work exactly? Well, in short it is these personal injury law firms that get access to information about people that have been involved in traffic accidents over the last few years, although sometimes they just cold call people and generate leads that way.

This takes quite a bit of salesmanship to convince members of the UK public they can claim money for the accident they had, even if nothing is wrong.

It is then a simple process of launching legal action against the car insurance companies, and if successful, the personal injury lawyers take a portion of the compensation awarded.

Experts now estimate that nearly 800,000 compensation claims were made in 2015 alone, and are predicting that by 2020 that figure will go beyond 1 million.

Ultimately though it all has one consequence..drivers end up paying for it with higher premiums, because the car insurance companies have to make up for the loss in revenue somehow, especially as they are now having to contend with more and more compensation claims.

Not only that, but there are also scams such as “crash for cash” where organised gangs stage traffic accidents in order to cash in on the insurance. With all of these things going on it’s no wonder that car insurance premiums are becoming more expensive.

So what can be done to stop these compensation claims? One idea that has been talked about is replacing cash payouts for minor injuries, and instead, replacing that with free physical treatment.

In other words, there would be a lot less cash to go after, and this in turn would drive the whole compensation culture away from the car insurance industry.

There needs to be something done quickly in my opinion. The last thing we want is these personal injury lawyers finding more loopholes and making premiums even more expensive. People in the UK are already paying too much for car insurance.

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