Insurance Premiums to fall as new whiplash injury rules are introduced
Motorists could see £1 billion a year back in their pockets thanks to new government measures to drive out fraudulent whiplash claims.
Leading insurers have committed to give customers 100% of the savings made from new government reforms to help slash the cost of motor insurance - meaning annual insurance premiums could fall by around £50.
The agreement comes after a recent roundtable meeting - between the insurance industry and Ministers - to discuss the Chancellor’s Autumn Statement announcement that the government would end the right to cash compensation for minor whiplash injuries and raise the upper limit for the small claims court for personal injury claims from £1,000 to £5,000.
Whiplash claims cost the country £2 billion a year and currently adds £90 to the average motor insurance policy. The detail of the plans will be consulted on early this year and the measures will be introduced as soon as possible.
Robert Banner, Solicitor & Executive Director at local law firm Banner Jones Solicitors comments “The end to cash compensation for low value injuries will help to bring down unnecessary costs in the motor insurance market, and honest motorists should be the beneficiaries. There will obviously still be cases where a serious injury has occurred and the victim is more than justified in making an injury compensation claim. We would recommend in these cases that seeing a local injury claim specialist face to face will be the best way forward for you.’
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