A new study, by insurance company LV= has found that whiplash claims in the UK are among the highest in the world with a huge 80% of injury claims seeking compensation for whiplash.
The study has found that claims for whiplash in the UK are way above the European average and even ranks above the US, where claims for whiplash account for two thirds of all injury claims.
Wondered why your insurance policy has risen this year despite no accidents and an extra year’s no claims? Well, this might explain it: whiplash claims cost the insurance industry an estimated £2billion a year which equates to an addition of around £90 to every insurance policy – not great news for careful drivers.
Despite the government’s best efforts to limit unnecessary claims, the study by LV= has found that drivers are regularly contacted by claims management companies whether they’ve been involved in an accident or not.
The report suggests that on average, a driver receives communication from five companies offering financial remuneration for injuries after an accident, and one in eight people are contacted before they’ve even informed their insurance company of the incident.
The government have taken a number of measures to help curb the number of minor injuries claims; for example, they’ve increased the upper limit of personal injury claims taken to small claims court from £1,000 to £5,000, as well as removing the right to general damages for soft tissue injuries. However, despite these efforts, LV= believes more needs to be done to reduce the number of minor injuries claims which are driving insurance premiums up and up.
GI Claims Director of LV= insurance, Martin Milliner, said:
“Government makes one change to the system and the fraudsters find a way around it – meaning further action is needed and fraud persists. The more time it takes to implement changes, the easier it makes it for fraudsters to find another loophole, hitting the pocket of the honest consumer.
“We would like to see a quick and comprehensive response from Government to implement all the Insurance Fraud Taskforce’s recommendations.”
Despite the fact insurance premiums continue to rise, there are a number of ways to ensure the cost of your premium doesn’t get out of control. Brand new, fuel efficient vehicles are generally cheaper to insure than older models – surprising right? On top of this, if you opt for a cheap lease vehicle then there’s always the option to include insurance within your lease, meaning it becomes a simple monthly payment, so this is always something to consider.