Cheaper car insurance in store as industry is set to save £1bn when brakes are slammed on whiplash scams
- New system will stop £1.2bn being paid out by banning whiplash settlement
- Lawyers have been eliminated from the system and replaced with set tariffs
- Justice Secretary Robert Buckland said changes will end ‘greedy opportunism’
Car insurance premiums will drop by up to £35 a year for motorists thanks to a crackdown on phoney whiplash claims which comes into force today.
The new system will stop an estimated £1.2billion being paid out by banning the settlement of whiplash claims without a doctor’s report. It also simplifies the process for those who have genuinely suffered these injuries on the roads.
Lawyers have been eliminated from the system and replaced with set tariffs of £240 to £4,300 for pay-outs, which can be claimed online.
The new system will stop an estimated £1.2billion being paid out by banning the settlement of whiplash claims without a doctor’s report. Stock picture
Justice Secretary Robert Buckland said the changes will end ‘greedy opportunism’, including claims by people who pretended to have suffered neck injuries after being involved in a minor shunt.
The reforms will push down the price of motoring cover as the insurance industry will no longer have to shell out an estimated £1.2billion on fake claims and legal fees. Companies have pledged to pass on these savings to customers.
Latest figures show there were 650,000 road traffic accident injury claims last year, of which 550,000 were whiplash-related.
Mr Buckland added: ‘For too long the system has been open to abuse by individuals looking for an easy payday, with ordinary motorists paying the price. Our changes will end this greedy opportunism.’
Justice Secretary Robert Buckland (pictured) said the changes will end ‘greedy opportunism’, including claims by people who pretended to have suffered neck injuries after being involved in a minor shunt
Steve Gooding, director of the RAC Foundation, said: ‘This new system should mean legitimate cases are easier and quicker to deal with, fraudulent claims are more likely to fail and all drivers benefit from decreases in their insurance premiums.’
A Ministry of Justice spokesman added: ‘Despite the UK having some of the safest roads in Europe with fewer crashes reported year-on-year since 2013, road traffic accident claims are more than 40 per cent higher than in 2006.
‘This has been fuelled by a reported increase in exaggerated claims, driving up premiums for ordinary motorists.’