Whiplash claims biggest cause of higher insurance premiums
The Transport Select Committee comments on the rising costs of motor insurance, the causes and possible solutions
The committee warns that the spiralling costs of motor insurance premiums are due to market dysfunction and the increase in claims for whiplash injury.
The report went on to blame the whole industry of encouraging motorists to put forward claims and an increase in whiplash claims which are costly for insurers’ to challenge.
A revised threshold for whiplash cases should be brought in and if there is no significant decrease in whiplash claims then legislation to make it harder to claim for this type of injury. It also called the process of referral fees and the selling of people’s data as a “merry-go-round”.