In recent years, one of the reasons for increased car insurance premiums has been due to the extra costs of claims for whiplash injuries from car accidents. There have been reforms which have come into place and they are likely to have an effect on car insurance premiums, meaning that we all should benefit from lower insurance premiums.
About Whiplash Injuries and Whiplash Claims
According to the NHS, “Whiplash is a neck injury caused by sudden movement of the head” and it “most often happens after a traffic accident or a slip or fall”.
In 2019/2020, it was reported that there were more than 550,000 claims. As there were no upper limits as to what could be claimed and no pressure on providing medical evidence, these claims were prone to an increasing number of excessive or fraudulent claims.
The reforms which had come into effect on 31st May includes an online portal for road traffic accident claims that are under £5,000. This meant that lawyers would not be required. This reduces the overall cost to insurance companies while also providing reasonable compensation for sufferers who have made claims. As part of the reforms, medical evidence will be mandatory which will help to mitigate the incentive to make fraudulent claims.
This new online portal has been described as being very easy to use. It’s said to have been extensively tested and it also has a simple user guide which will help even the less savvy internet users to correctly fill out the necessary questions.
Although this could mean that a number of ‘no win/no fee’ legal firms may have to find another source of revenue, it also means that it will put a stop to organised groups who arrange fake accidents in order to make false claims for thousands of pounds. By requiring medical evidence when making these claims, it will make it more difficult for these groups to fake accidents in order to get a pay out.
It’s estimated that insurers could be making savings in the region of £1.2 billion and insurers have also pledged to pass this saving onto policyholders. Car insurance customers could make individual savings of as much as £35 per annual policy.
When it’s time for your insurance renewal and your current insurer offers a new premium, you may wish to compare this offer to what other insurers may be offering. This is so that you can the best priced policy that is suitable for your needs before you accept the new offer.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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