Insurers say they're passing on whiplash savings
Insurers have been clamping down on false whiplash claims, and they say they'll be passing on the savings made from them, to their customers. The Government reckon that this could see annual premiums falling by £50.
Now, hands-up if you trust insurance companies, and politicians for that matter, to make this actually happen.
Either way, officials think that somewhere in the region of £1bn a year could go back into motorists' bank accounts, and follows the news from the Autumn Statement, which said that there's going to be an end to the right of cash compensation for minor whiplash injuries.
Soon, we could see the upper limit for personal injury claims which will be dealt with by the small claims court raised from £1,000 to £5,000.
With whiplash claims costing the country billions a year, and adding £90 on your average motor insurance policy, this is something that does need to be looked at.
James Dalton, director of general insurance at the Association of British Insurers, said: "The Government reforms are a significant breakthrough in tackling the UK's compensation culture and are good news for motorists. Reforms to the Small Claims Track Limit and the end to cash compensation, for low value injuries, will help to bring down unnecessary costs in the motor insurance market and honest motorists should be the beneficiaries."
Justice Minister Lord Faulks said: "We are determined to crack down on the culture of fraud and exaggerated claims in the motor insurance industry, which means car owners are forced to pay higher premiums to cover the false claims of others."