Potentially Cheaper Car Insurance as Government Cracks Down on Fake Whiplash Claims

As part of our dedication to offering the lowest insurance quotes we can, The Insurance Store keeps up to date with all major changes in legislation that affect our industry. It is with this in mind that we bring you information on a government initiative to cut down on fake whiplash insurance claims that could save you money on your insurance policy.


Fraud culture

In research conducted by the AA, 11% of motorists questioned said they ‘saw nothing wrong in claiming for an injury following a collision caused by someone else, even if no injury was suffered’, and it is this fraudulent claim culture that the government is aiming to stamp out.

The crackdown on fraudulent claims, set to come into force in April 2017, has been deemed necessary after it was revealed that whiplash claims alone cost the insurance industry £2 billion a year, and these claims have increased 9% on last year’s figures, now close to an all -time high number of claims.

No more payouts for minor injuries

As part of the initiative, the upper threshold for making a small court claim has been increased from £1,000 to £5,000 to allow more claims to be settled without the presence of a full court, and thereby decreasing overall legal costs and freeing up money to cut the costs of car insurance bills by up to £50 – a saving that leading insurers have already stated will be passed on to motorists.

Furthermore, the right to make cash claims for minor injuries has been revoked, with the new initiative instead paying for the rehabilitation required for injured motorists. The theory behind this is that the removal of a cash reward will discourage those playing up the extent of their injuries. The AA’s director of counter-fraud summarised that ‘by giving successful personal injury claimants care such as physiotherapy, which compensation is supposed to pay for, those out to make a fast buck from an injury claim that may not have happened, will immediately be discouraged. However, those who have genuinely suffered injury will get the treatment they need.’

Harsher rules for personal injury lawyers

To further discourage individuals from making bogus claims, harsher rules are being put in place to prevent personal injury lawyers luring in custom. Referral bonuses for customers who bring in friends and family members, shopping vouchers, cash and iPads are amongst some of the incentives that lawyers use to encourage custom that are to be banned.
For unbeatable car insurance, look no further than The Insurance Store. Whether you’re looking for third party, fire and theft or fully comprehensive insurance, we always aim to beat our competitors’ prices and offer our customers the best deals around. Contact us today for more information.