Insurance Premiums To Rise Despite Whiplash Crackdown
Costs To Rise Across The Board
According to Which?, Fitch Ratings agency say that insurance premiums for UK drivers will rise, continuing a trend which has seen insurance costs rise since early 2015, and over the past 12 months prices have risen 17%.
This rise is in spite of a government crackdown on whiplash claims, and Fitch Ratings suggest we should only start to see the benefit of this crackdown on our insurance prices, in 2018, and only after insurance companies have seen evidence of reduced claims.
Personal injury claims account for 37% of motor insurance claim pay-outs, and it’s believed that a lot of those claims are actually fake whiplash claims, says car website www.honestjohn.co.uk. Director of AA Insurance, Michael Lloyd, comments: “That there over 800,000 small injury claims registered through the Ministry of Justice small claims track last year, of which 750,000 are estimated to be whiplash injury claims is, frankly, shocking. It’s little wonder that the UK is shamefully regarded as the whiplash capital of the world. We would particularly welcome capping of compensation for minor injury to £425, paid only on medical proof of injury; banning offers to settle without medical evidence and a more transparent tariff of compensation for more serious injury.”
Prices have been rising because the levels of reserve release which have supported profitability in recent years are unsustainable in the long term, say Fitch Ratings.
Figures from Confused.com show that 66-year-olds will face the highest rise at 28%, whereas prices for 17-year-olds will only rise by 9%, however the average young driver insurance premium is a whopping £2,083.
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